Jim Cramer - Mad Money Clorox Company CLX-N COMMENT Apr 29, 2022

Wait for the next quarterly report. It pays a divided of 2.9%, so wait till it yields 3.3% or 3.4%. The whole industry can't find any footing.

It reports Monday. They may not pass their rising costs onto consumers. Maybe. He hopes for a good report, but is bracing himself for a bad one.

(A Top Pick Mar 08/21, Down 26%) Doesn't own stock anymore even though has recommended it to investors. Simple and straight forward product that everyone uses. Could not justify investment.

They reported a mixed quarter on Monday. Rampant cost inflation is eating alive consumer product companies which should be thriving at this stage of the cycle. Clorox has been an awful performer and many have been shorting this. They reported declining gross margins and they shaved 20 cents off their full-year earnings forecast, but they were better than expected in the previous quarter. CLorox reported a 39-cent earnings beat and announced another round of price increases for July which should help margin compression. The stock has recovered from Monday's losses and then some. The company has room to run, especially if the Fed can kill inflation.

Nvidia is trading at the same forward PE as Clorox. It's worth looking at these quality growth names with real earnings and cash flows, because inflation will peak and the market will re-rate what the Fed will do. Investors will position themselves in such names in the second half of this year.

It had a mediocre quarter, but shares didn't decline. This means CLX is closer to a bottom, so you should be owning this.