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Clorox (CLX) Dips More Than Broader Markets: What You Should Know

Clorox (CLX) closed at $200.51 in the latest trading session, marking a -1.17% move from the prior day. This move lagged the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 1.94%.

Heading into today, shares of the consumer products maker had gained 2.4% over the past month, lagging the Consumer Staples sector's gain of 7.45% and the S&P 500's gain of 5.72% in that time.

CLX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.64, up 12.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.72 billion, up 18.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.03 per share and revenue of $7.32 billion. These totals would mark changes of +9.1% and +8.93%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CLX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CLX is currently a Zacks Rank #3 (Hold).

Digging into valuation, CLX currently has a Forward P/E ratio of 25.26. This represents a premium compared to its industry's average Forward P/E of 24.89.

Meanwhile, CLX's PEG ratio is currently 4.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Soap and Cleaning Materials was holding an average PEG ratio of 4.3 at yesterday's closing price.

The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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