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Clorox (CLX) Gains As Market Dips: What You Should Know

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In the latest trading session, Clorox (CLX - Free Report) closed at $181.51, marking a +0.07% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.

Prior to today's trading, shares of the consumer products maker had gained 3.7% over the past month. This has outpaced the Consumer Staples sector's loss of 10.8% and the S&P 500's loss of 10.5% in that time.

Wall Street will be looking for positivity from CLX as it approaches its next earnings report date. This is expected to be May 1, 2020. On that day, CLX is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 5.56%. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 5.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.43 per share and revenue of $6.32 billion, which would represent changes of +1.74% and +1.67%, respectively, from the prior year.

Any recent changes to analyst estimates for CLX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.93% higher within the past month. CLX is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that CLX has a Forward P/E ratio of 28.19 right now. For comparison, its industry has an average Forward P/E of 22.21, which means CLX is trading at a premium to the group.

We can also see that CLX currently has a PEG ratio of 5.38. 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 3.75 as of yesterday's close.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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