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NYSE:CLX
This summary was created by AI, based on 4 opinions in the last 12 months.
Clorox Company (CLX) has garnered mixed reviews from various experts. Many highlight its status as a dividend aristocrat, boasting a solid 5% dividend yield while trading at a lower-than-historical P/E ratio, suggesting potential value. However, the company has faced significant challenges, including a -11.83% decline this year and a sharp 30% drop amid economic fluctuations and inflation concerns. The market dynamics have shifted; previously favored consumer packaged goods are now being scrutinized, particularly as consumers may shy away from name brands. Experts note that despite recent struggles, Clorox's earnings growth is stabilizing, and the long history of dividend increases presents a promising outlook, especially in a volatile market influenced by oil prices.
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.
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.