Jeff Mills on Fast Money
Clorox Company
CLX-N
WATCH
May 09, 2022
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.
(A Top Pick Feb 09/21, Down 2.9%)Stockchase Research Editor: Michael O'Reilly To ensure progressing capital returns of our PAST TOP PICK with CLX, we recommend trailing the stop (from $150) to $165.
(A Top Pick Feb 09/21, Down 12.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CLX has triggered its stop at $165. To remain disciplined, we recommend covering the position at this time.
(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 report Monday. They've had some awful quarters, so they only need to report a decent quarter to push prices rise. They need to do something with their supplements business, which is lousy.
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.
Still really expensive at over 30x earnings for a consumer product. Not fantastic growth. Relatively weak balance sheet, lots of debt. Fairly well managed. Cost-cutting efforts can only go so far. Be careful.
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