Clorox Company (CLX)

The Fair Market Value is 41% below the current price. It is currently trading at the Price to Book of 25X. This stock is simply not investment grade anymore.

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.

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.