Headquartered in Oakland, California, The Clorox Company (CLX) ) is a leading manufacturer and marketer of consumer and professional products. Valued at $18.8 billion by market cap, its core offerings include household cleaning and bleach products, charcoal, cat litter, dressings and sauces, natural personal care items, and trash bags.
Shares of CLX have underperformed the broader market considerably over the past year. CLX has surged 21.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024 alone, CLX’s stock rose 17.6%, compared to the SPX’s 23.1% rise on a YTD basis.
Narrowing the focus, CLX has surpassed the Consumer Staples Select Sector SPDR Fund’s (XLP) 13.5% gains over the past year and 11% return in 2024.
On Oct. 30, Clorox announced its Q1 earnings, prompting a more than 3% rise in its shares over the next two trading sessions. The strong results were driven by better-than-anticipated performance, a full recovery in market share, and a robust product portfolio. Additionally, the company’s IGNITE strategy played a key role in supporting an improved outlook for gross margin and EPS, paving the way for sustained long-term growth.
For the current fiscal year, ending in June 2025, analysts expect Clorox’s EPS to grow 11% to $6.85 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering CLX stock, the consensus is a “Hold,” a step up from “Moderate Sell” two months ago. The current rating is based on one “Strong Buy,” 14 “Hold” rating, and five “Strong Sells.”
On Nov. 6, TD Cowen upgraded Clorox from “Sell” to “Hold,” raising the price target to $170 from $155. Clorox’s potential to exceed earnings expectations and invest strategically could position it favorably against home and personal care industry peers. Sequential improvements post-cyberattack suggest FY25 guidance might be understated, allowing room for EPS beats and upward revisions, potentially boosting the stock's near-term performance.
While CLX currently trades above its mean price target of $160.17, the Street-high price target of $188 suggests an upside potential of 12.1%.
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