
NYSE:CLX
This summary was created by AI, based on 3 opinions in the last 12 months.
The Clorox Company, listed under the symbol CLX-N, is facing mixed reviews from experts. While it boasts a solid dividend yield of around 4.9% to 5% and has maintained a history of increasing dividends for 24 years, its stock has experienced significant volatility, including a notable decline of over 30% in the current year. Analysts highlight the company's attractive valuation at 16x earnings compared to its historical range of 18-20x, indicating it might be trading at a discount. However, concerns about inflation affecting consumer willingness to pay for name brands could be a headwind moving forward. Additionally, fluctuations in oil prices impact the company's performance due to reliance on oil-based products, making it uniquely sensitive to global events.
This has done well and they’ve had some positive earnings revisions. In the “staples” category it has a few things going right for it. It is a higher payor, so you get a nice dividend. Earnings growth should be in the high to mid single digits. The catch is, any valuation is quite rich. It’s come off a little since the peak, but staples, as a whole, is trading expensive. Interest rates going higher will put pressure on the stock.
In a higher interest rate environment, you are starting to see opportunities for different kinds of returns. This is a very safe stock and grows slowly. Increases its dividend regularity. At this price, it is a little rich.