In the latest trading session, Clorox (CLX) closed at $214.18, marking a +0.68% move from the previous day. This change outpaced the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.
Heading into today, shares of the consumer products maker had gained 0.36% over the past month, lagging the Consumer Staples sector's gain of 2.2% and the S&P 500's gain of 3.25% in that time.
Wall Street will be looking for positivity from CLX as it approaches its next earnings report date. This is expected to be November 2, 2020. On that day, CLX is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 47.17%. Meanwhile, our latest consensus estimate is calling for revenue of $1.76 billion, up 16.59% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $6.98 billion, which would represent changes of +4.76% and +3.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CLX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. CLX currently has a Zacks Rank of #4 (Sell).
In terms of valuation, CLX is currently trading at a Forward P/E ratio of 27.6. Its industry sports an average Forward P/E of 23.52, so we one might conclude that CLX is trading at a premium comparatively.
Meanwhile, CLX's PEG ratio is currently 4.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Soap and Cleaning Materials stocks are, on average, holding a PEG ratio of 4.54 based on yesterday's closing prices.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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