
NYSE:CLX
This summary was created by AI, based on 4 opinions in the last 12 months.
Clorox Company (CLX) is recognized as a dividend aristocrat, offering a 5% dividend yield at a PE ratio of 17. However, despite its financial strengths, including a safe dividend growth history and reduced costs due to normalized supply chains, the company faces negative perceptions with a year-to-date decline of approximately 11.83%. Recent performance highlights earnings growth potential of 6-8% as it rebounds from Covid-related impacts. Yet, the stock's volatility, particularly in response to geopolitical events affecting oil prices, has led to significant fluctuations, including a 30% decline this year. As the market dynamics shift away from consumer packaged goods amid inflation concerns, analysts await insights from the upcoming earnings report to better understand the company's future trajectory.
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.