The Clorox Company (CLX) is a multinational manufacturer and marketer of consumer and professional products, including cleaning, disinfecting, food, and personal care brands. Headquartered in Oakland, California, Clorox operates in several countries and markets through retail, club, e-commerce, and professional channels. The company has a market capitalization of $10.54 billion, just above the “mid-cap” range, making it a “large-cap” stock.
Its shares reached a 52-week low of $82.51 on Sept. 21, but are up 5.6% from that level. As investors digest weak organic sales, margin compression, and a cautious outlook from analysts, the stock is seeing some weakness. Over the past three months, the stock has declined 3.8%. Meanwhile, the State Street Consumer Staples Select Sector SPDR ETF (XLP) is up marginally over the same period.
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www.barchart.comOver the past 52 weeks, Clorox’s stock dropped 27.3%, while the Consumer Staples Select Sector SPDR ETF has gained 6.1%. The stock has also dropped 13.6% year-to-date (YTD), while the ETF has risen 6.5%. Clorox’s shares have traded below their 50-day and 200-day moving averages since late August.
www.barchart.comClorox has been facing pressure from the comparative effects of its ERP system transition. U.S. retailers front-loaded orders ahead of the transition, adding about 3.5 points to FY2025 sales and $0.90 to EPS. In FY2026, they drew down that inventory during the ERP rollout, cutting shipments and weighing on year-over-year (YOY) results. Net sales decreased 2% (13% organically) to $1.95 billion in the fourth quarter of fiscal 2026. The company acquired GOJO Industries, Inc. in April, leading to an inventory step-up. Adjusted EPS fell 42% to $1.66.
Wall Street analysts have positive views on Clorox’s bottom-line trajectory. For the current quarter, its profit is expected to increase by 16.5% YOY to $0.99 per share. For fiscal 2027, the company’s bottom line is projected to increase by 4.9% annually to $5.80 per share, followed by a 10% climb to $6.38 per share in fiscal 2028.
We compare Clorox’s performance with that of another staples stock, Colgate-Palmolive Company (CL), which is up 9.7% over the past 52 weeks, 10.2% YTD, and dropped 1.8% over the past three months. Therefore, Clorox has clearly underperformed over these periods.
Wall Street analysts are tepid on Clorox’s stock. The stock has a consensus rating of “Hold” from the 18 analysts covering it. The mean price target of $96.62 implies a 10.9% upside from current levels. The Street-high price target of $117 indicates a 34.3% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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