Clorox (CLX) Gains But Lags Market: What You Should Know




  • In Business
  • 2022-06-24 22:15:10Z
  • By Zacks
 

Clorox (CLX) closed at $140.75 in the latest trading session, marking a +0.46% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the consumer products maker had lost 4.3% over the past month, lagging the Consumer Staples sector's loss of 1.3% and outpacing the S&P 500's loss of 4.31% in that time.

Investors will be hoping for strength from Clorox as it approaches its next earnings release. The company is expected to report EPS of $0.98, up 3.16% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.87 billion, up 3.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $7.18 billion, which would represent changes of -42.62% and -2.23%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Clorox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Clorox is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Clorox currently has a Forward P/E ratio of 33.68. This valuation marks a premium compared to its industry's average Forward P/E of 24.36.

We can also see that CLX currently has a PEG ratio of 4.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CLX's industry had an average PEG ratio of 4.03 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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