The Clorox Company: Analyzing Stock Performance and Market Challenges
Based in Oakland, California, The Clorox Company (CLX) is known for its wide range of consumer and professional products. Valued at $18.4 billion by market cap, it offers various items including cleaning supplies, cat litter, garbage bags, grilling products, salad dressings, water filters, personal care products, and vitamins. These are sold under well-known brands such as Clorox, Brita, Burt’s Bees, Glad, Kingsford, and Hidden Valley.
Stock Performance Struggles
Unfortunately, Clorox’s stock has not fared well compared to the overall market in the last year. The shares have decreased by 3.3%, while the S&P 500 Index ($SPX) has increased nearly 20.5%. Since the start of 2025, CLX stock is down 8.5%, contrasting with an uptick of 2.9% for the SPX during the same period.
Comparison with Consumer Staples
Zooming in further, CLX’s struggles are evident when compared to the Consumer Staples Select Sector SPDR Fund (XLP), which has seen an uptick of about 9.4% in the past year. Notably, XLP has gained 2.5% on a year-to-date basis, significantly outperforming CLX’s losses in that timeframe.
Factors Behind the Decline
Several factors contribute to Clorox’s underperformance. There has been a misunderstanding regarding post-pandemic demand, alongside rising inflation and decreasing revenues. This decline is also partly tied to inventory normalization and the company’s strategic divestment of operations in Argentina, Uruguay, and Paraguay. Temporary distribution setbacks from a cyberattack and unfavorable foreign exchange rates have further compounded these issues.
Recent Financial Results
On February 3, CLX reported its Q2 earnings results, which surprised the market. Despite a more than 7% drop in share price in the next trading session, the company’s revenue came in at $1.7 billion, exceeding Wall Street’s forecast of $1.6 billion. Its adjusted EPS was $1.55, beating expectations of $1.39. Looking ahead, Clorox projects a full-year adjusted EPS between $6.95 and $7.35.
Analyst Expectations
For the fiscal year concluding in June, analysts anticipate Clorox’s EPS to rise by 15.9% to $7.15 on a diluted basis. Clorox has a notable history of earnings surprises, having exceeded consensus estimates in every quarter over the past year.
Among the 20 analysts following CLX stock, the overall recommendation is a “Hold.” This consensus includes one “Strong Buy” rating, 15 “Holds,” and four “Strong Sells.” This positioning is an improvement from two months ago when five analysts rated it a “Strong Sell.”
Price Targets and Predictions
On February 5, D.A. Davidson analyst Linda Bolton Weiser maintained a “Hold” rating on CLX, setting a price target of $169, which suggests a potential upside of 13.7% from current levels. The mean price target stands at $161.78, implying an 8.8% premium to the current stock prices. The highest target of $189 indicates an ambitious potential gain of 27.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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