Company Overview - The Clorox Company (CLX) is a California-based consumer products firm known for its cleaning, household, and personal care brands, with a market cap of $14.6 billion and operations in over 100 countries employing about 8,000 people [1] Earnings Expectations - Clorox is expected to release its Q1 results on November 3, with analysts predicting an EPS of $0.78, a decline of 58.1% from $1.86 in the same quarter last year [2] - For fiscal 2026, EPS is projected to be $5.85, down 24.2% from $7.72 in fiscal 2025, but is expected to rise by 14.2% to $6.68 per share in fiscal 2027 [3] Stock Performance - CLX stock has decreased by 26.4% over the past 52 weeks, significantly underperforming the S&P 500 Index's 14.1% returns and the Consumer Staples Select Sector SPDR Fund's 2.8% increase during the same period [4] - Despite the stock's decline, Clorox announced a quarterly dividend of $1.24 on September 16, which led to a 1.7% increase in share price, highlighting its commitment to shareholder returns [5] Analyst Ratings - The consensus rating for CLX stock is "Hold," with 19 analysts providing ratings that include one "Strong Buy," 14 "Holds," and four "Strong Sell" ratings [6] - The mean price target for CLX is $128.44, indicating a potential upside of 7.3% from the current price level [6]

Group 1: Philip Morris - Philip Morris International Inc. has a history of increasing dividends for 17 consecutive years, with the latest increase on September 19 raising the quarterly payout from $1.35 to $1.47 per share, resulting in an annual figure of $5.88 per share [3] - The current dividend yield for Philip Morris stock is 3.69% [3] - The company's annual revenue as of June 30 is reported at $39.06 billion, with Q2 2025 revenues of $10.14 billion, which missed the consensus estimate of $10.30 billion, while EPS of $1.91 exceeded the consensus of $1.85 [4] Group 2: Southern Company - The Southern Company has raised its dividends for 24 consecutive years, with the most recent increase on April 21 raising the quarterly payout from $0.72 to $0.74, equating to an annual figure of $2.96 per share [5] - The current dividend yield for Southern Company stands at 3.02% [5] - The company's annual revenue as of June 30 is reported at $28.36 billion, with Q2 2025 revenues of $6.97 billion and EPS of $0.92, both surpassing consensus estimates [6] Group 3: Clorox - The Clorox Company is a global manufacturer and marketer of consumer and professional products, with a diverse portfolio that includes cleaning and disinfecting products, food products, and personal care items [7]

Core Viewpoint - The Clorox Company (NYSE:CLX) is facing challenges due to slowing consumer demand, but its strong dividend history and cash flow remain positive aspects for investors [2][3][4]. Group 1: Company Performance - JPMorgan analyst Andrea Teixeira has lowered the price target for Clorox from $135 to $127 while maintaining a Neutral rating [3]. - The company reported net cash from operations of $981 million in 2024, a 41% increase from $695 million in the previous fiscal year [4]. - Clorox has raised its dividend for 22 consecutive years, currently offering a quarterly dividend of $1.24 per share, resulting in a dividend yield of 4.16% as of October 14 [4]. Group 2: Market Conditions - The household, personal care, and beauty sectors are expected to experience another weak quarter due to subdued consumer demand in the US and slowing trends in Western Europe [3]. - Retailers are continuing to scale back their inventories, exacerbating the demand issues faced by Clorox and other large-cap firms in the sector [3].

Market Trends - The current trend for stocks remains bullish, particularly for technology and AI stocks, despite signs of economic slowdown [1] - The government shutdown may have a larger ripple effect on the economy, contrasting with the government's previous rescue actions in 2021 [2] - Investors are advised to consider adding defensive stocks due to ongoing economic uncertainty [2] Costco Wholesale - Costco has proven its value to consumers and investors, with a steady increase in membership fees and strong sales growth [4][5] - The stock has provided a total return of over 175% due to year-over-year comparable sales growth, buybacks, and dividends [5] - Despite its high share price of over $930, Costco's valuation remains reasonable compared to its historical performance [6] Chevron - Chevron has faced challenges as energy stocks have not performed well for growth investors, with crude oil prices not rising as expected [7] - The company is well-positioned in the LNG market, particularly in Asia, which is expected to drive revenue growth as markets shift away from coal [8] - Analysts forecast earnings growth of over 16.5%, suggesting Chevron stock may be undervalued at around 13x earnings [9] Clorox - Clorox is viewed as a contrarian pick among defensive stocks, with its stock trading near six-year lows due to post-pandemic demand struggles [11] - The company is modernizing operations and improving operating margins, which may present a buying opportunity despite bearish sentiments [12] - Clorox's stock has established a solid technical support base around $118, but it needs to demonstrate revenue and earnings growth to regain investor confidence [13]

Core Insights - The Clorox Company (NYSE:CLX) is recognized as one of the Top 15 Growth Stocks for Long-Term Investors [1] Company Overview - Clorox has a history of over a century, with its first product, liquid bleach, introduced in 1913, and has since become a global producer of consumer and professional products [2] - The company offers a diverse range of brands that cater to various markets, providing significant scale and a strong presence across multiple product categories [2] Marketing and Brand Investment - Clorox maintains its leadership position through substantial advertising efforts, planning to spend approximately 11% of its net sales on advertising and promotions in fiscal 2026 [3] - This investment underscores the company's commitment to supporting its brands and sustaining market strength [3] Product Demand and Market Resilience - A key advantage of Clorox's business model is the everyday nature of its products, which are used by millions of consumers regardless of economic conditions [4] - The company estimates that its products are found in about nine out of ten U.S. households [4] - Demand for cleaning supplies and food products remains steady even during economic downturns, allowing Clorox to maintain profitability through various cycles [5] Dividend Growth - Clorox has a strong track record of increasing its dividend, with a growth streak spanning 22 years [5] - The company currently offers a quarterly dividend of $1.24 per share, resulting in a dividend yield of 4.13% as of October 12 [5]

Group 1 - The Clorox Company will announce its first-quarter fiscal year 2026 results on November 3, 2025 [1] - The announcement will include a press release and prepared management remarks, followed by a live Q&A audio webcast with the Chair and CEO Linda Rendle and CFO Luc Bellet [3] - Clorox has been recognized for its commitment to sustainability, ranking No. 1 on Barron's 100 Most Sustainable Companies list for three consecutive years [2] Group 2 - Clorox's trusted brands include Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol®, along with international brands such as Clorinda®, Chux®, and Poett® [2] - The company has been headquartered in Oakland, California, since 1913 and was one of the first in the U.S. to integrate ESG into its business reporting [2]

Group 1: Clorox - Clorox is a dividend aristocrat with modest recent dividend increases, raising its quarterly dividend by 2 cents annually for the past four years, resulting in a less than 2% annual growth rate [1] - The 5-year dividend growth is 2.9% annualized, while the 10-year growth is 5.1% annualized, with the current yield at 4% [1] - Analysts forecast mid single-digit annual dividend growth over the next 10 years, with a payout ratio expected to be around 60% in the long term [1] Group 2: Craft Hind - Craft Hind announced plans to split into two firms and reduced its quarterly dividend rate to 40 cents from 60.25 cents in 2019, maintaining this rate since then [1] - The stock now trades at a 50% discount to its $51 fair value estimate, with a current yield of 6.2%, exceeding peers like Campbell and General Mills [2] Group 3: Verizon - Verizon declared a 1.8% dividend increase in early September, consistent with its 2% annualized growth over the past 5 years, resulting in a current yield of 6.3% [4] - The current dividend rate consumes less than 60% of free cash flow, providing a cushion to maintain this income stream for shareholders [5] - The stock trades near a 20% discount to its $53 fair value estimate [5]

Group 1 - The Clorox Company (NYSE:CLX) is recognized as one of the Best High Yield Stocks to Buy in October, highlighting its attractiveness for investors seeking dividend income [1] - Clorox derives approximately 80% of its sales from brands that are leaders in their respective categories, providing a strong competitive advantage [2] - The company's product portfolio includes well-known brands such as Kingsford, Burt's Bees, Hidden Valley Ranch, Fresh Step, Pine-Sol, Brita, Glad, and Liquid-Plumr, indicating its resilience in challenging market conditions [3] Group 2 - Clorox currently pays a quarterly dividend of $1.24 per share, reflecting a 1.6% increase in July, marking the 22nd consecutive year of dividend increases [4] - The stock offers a dividend yield of 3.99% as of September 27, making it an appealing option for dividend capture strategies [4]

Core Insights - Clorox Company (CLX) is effectively managing margins through holistic strategies, product innovations, and the IGNITE strategy, capitalizing on pricing strength to support growth and mitigate cost pressures [1][10] - The company is proactively adjusting its pricing strategy to address inflation and changing consumer behaviors, with a focus on premium pricing for core brands [2] - Clorox has implemented a dual pricing strategy using advanced analytics to balance affordability for consumers with sustained profitability, which has reinforced gross margin expansion despite soft volume trends [3][10] Financial Performance - Clorox delivered flat gross margin in Q4 fiscal 2025 after ten consecutive quarters of expansion, demonstrating a disciplined pricing approach and cost-saving initiatives that have bolstered margins [4] - All three core business units of Clorox posted solid year-over-year growth in Q4 fiscal 2025, indicating broad-based segment strength [4][10] - The Zacks Consensus Estimate for CLX's fiscal 2026 earnings implies a year-over-year decline of 21.5%, while fiscal 2027 shows an anticipated growth of 14.1% [11] Valuation Metrics - Clorox shares have declined by 24.7% year-to-date, compared to an industry decline of 8.1% [7] - The company trades at a forward price-to-earnings ratio of 19.73X, slightly above the industry average of 19.12X [8]

Market Overview - The recent rate cut by the Federal Reserve has raised concerns about the economy, particularly regarding employment stabilization versus inflation focus [2] - The major tech stocks, referred to as MAG 7, have been driving the market higher but are currently experiencing a pause [2] Clorox - Clorox is being considered as a defensive investment due to its status as a consumer staple, especially as tech stocks take a break [3][4] - The company's recent earnings reported revenue of $7.1 billion and a gross margin of 45% [4] - The stock has historically bottomed around the $118 level, indicating a potential low-risk, high-reward opportunity [5] - Technical analysis shows a recent price range with resistance levels at $132 and $127, and a significant support level at $118 [7][11] - A bullish divergence in RSI suggests potential upward momentum despite recent price declines [9][10] - The proposed trade involves selling a $120 strike price put option expiring on October 17, which could yield a 10% return if the stock remains above $120 [12] American Electric Power - American Electric Power is highlighted for its vertical integration in the energy sector, providing a diversified approach to electricity generation and distribution [15] - The stock has been in an uptrend since July 2023, recently bouncing off a technical support channel [16] - Technical indicators show a series of higher lows, with important resistance levels around $110.50 and $115 [20][21] - The proposed trade involves a call option with a $105 strike price expiring on June 18, 2026, with a break-even point at $115 [23] Lowe's (Insurance Company) - Lowe's is recognized for its diversification beyond insurance, including investments in energy, natural gas, and hospitality [25][26] - The stock is in a long-term uptrend, supported by its diversified business model [27] - Technical analysis indicates a breakout above previous highs, with significant trading activity around the $96 to $97 level [30][34] - The proposed trade involves a long call option with a $90 strike price expiring on December 19, 2025, with a break-even point at $101 [37]