Core Viewpoint - The article discusses consumer stocks that are positioned for significant stock recovery and continued dividend growth, emphasizing the importance of dividend investing over growth investing [1][2]. Clorox - Clorox is known for its bleach and owns other brands like Pine-Sol and Burt's Bees, benefiting from increased cleanliness demand during the COVID-19 pandemic [3]. - The stock has lost about 50% of its value over the last five years due to inflation, a cyberattack, and ERP software transition challenges [3]. - Clorox's current market cap is $13 billion, with a stock price of $109.98 and a dividend yield of 4.47%, supported by a consistent annual payout increase for 49 years [4][5]. - The investment in ERP software is expected to enhance efficiency, and the stock's P/E ratio of 17 suggests potential for dividend growth and stock price recovery [6]. Target - Target operates approximately 2,000 stores across the U.S. and has faced challenges such as rising inventories and falling sales post-pandemic [7][8]. - The stock has started to recover from its November low, with a current price of $111.14 and a dividend yield of 4.06%, marking it as a Dividend King with 54 years of payout increases [10]. - Target's P/E ratio is 13, significantly lower than competitors like Walmart and Costco, which trade at 42 and 51 times earnings, respectively, indicating potential for stock price recovery alongside rising dividends [11].

Core Insights - Clorox Company (CLX) is a prominent player in the consumer staples sector, supported by a portfolio of trusted household brands that cater to everyday consumer needs, demonstrating resilience despite a challenging operating environment marked by cautious consumer spending [1][2] Group 1: Growth Potential - Clorox benefits from a strong brand portfolio, including Clorox, Glad, Kingsford, and Burt's Bees, which have high household penetration and consumer trust, allowing the company to maintain pricing resilience even as consumers become more value-conscious [3] - The successful implementation of a new ERP system is expected to enhance operational efficiency, improve inventory visibility, and support margin recovery over time, despite initial disruptions [4] - Innovation is central to Clorox's growth strategy, with the company focusing on new product introductions and expanding existing platforms to address changing consumer behaviors and regain market share [5] - Clorox's disciplined financial management, including strong cash flow generation and prudent capital allocation, supports its growth outlook and enhances shareholder confidence [6] Group 2: Challenges - Clorox faces near-term sales pressure due to muted category growth and the aftereffects of its ERP system implementation, which led to temporary out-of-stocks and market share losses [7] - The company operates in a competitive environment, particularly in value-sensitive categories, where increased promotional activity from competitors has intensified price competition, potentially limiting short-term share gains [8] - Evolving consumer behavior, with a focus on value amid economic uncertainty, has resulted in negative price/mix dynamics, which may challenge Clorox's ability to drive margin expansion [10] Group 3: Market Performance - Clorox shares have declined by 30.7% over the past year, underperforming the Zacks Consumer Products – Staples industry's decline of 10.7% and the broader Consumer Staples sector's growth of 4.8% [11] - The current forward 12-month price-to-earnings (P/E) ratio for Clorox is 17.51X, which is a modest discount compared to the industry average of 18.36X [14]

Group 1: JB Global Capital Performance - JB Global Capital reported an 8.9% decline in Q4 2025, primarily due to a significant drop in Alibaba, its largest holding, while global markets experienced modest gains [1] - Despite the quarterly setback, the fund achieved a strong full-year return of 67.5% and has delivered a total return of 108.9% since inception, outperforming major benchmarks [1] - The fund's strategy focuses on avoiding mega-cap tech companies due to valuation discipline, with an emphasis on fundamentals for long-term performance as market leadership shifts [1] Group 2: The Clorox Company Overview - The Clorox Company initiated a position at an average cost of $104 per share during Q4 2025, marking a decade-low valuation for a business with over 35% returns on invested capital [2][3] - The company faced temporary disruptions from a $580 million ERP implementation, leading to a 17% decline in organic sales in Q1 fiscal 2026, but fill rates recovered to 92% by late October, with full stabilization expected by March 2026 [2] - The ERP investment is anticipated to generate $75–100 million in annual cost savings, including a 30% reduction in forecasting errors and a 15–20% improvement in working capital efficiency [2] Group 3: Valuation and Market Performance - The Clorox Company trades at 16 times earnings with a ~5% dividend yield, and has a discounted floor valuation of $95–103 per share, while fair value is estimated at $134–145 per share, indicating a potential upside of 30–40% [2] - The one-month return for The Clorox Company was approximately -11.25%, and its shares have declined about 31.10% over the last 52 weeks [2] - As of January 14, 2026, The Clorox Company stock closed at approximately $111.41 per share, with a market capitalization of about $13.59 billion [2]

Group 1 - The Clorox Company will release its second-quarter fiscal year 2026 results on February 3, 2026 [1] - The announcement will include a press release and prepared management remarks posted on the company's website at 1:15 p.m. PT / 4:15 p.m. ET [3] - A live Q&A audio webcast for analysts will take place at 2 p.m. PT / 5 p.m. ET featuring Chair and CEO Linda Rendle and Chief Financial Officer Luc Bellet [3] Group 2 - The Clorox Company, headquartered in Oakland, California since 1913, focuses on sustainability and consumer-centric innovation [2] - The company offers a range of trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol®, as well as international brands like Chux®, Clorinda®, and Poett® [2]

Core Insights - Clorox has launched a new product line, Clorox™ PURE™, aimed at managing common household allergens such as pollen, dust mite matter, and pet dander, marking its entry into the air care category [2][4][6] Product Overview - Clorox™ PURE™ includes daily allergen neutralizers in the form of air and fabric sprays, designed to be integrated into daily routines to help prevent allergic reactions [3][4] - The product utilizes a plant-based active ingredient with Aller-Fresh™ Technology, which alters the protein structure of allergens, preventing them from triggering allergic responses [4][6] Product Features - The Clorox™ PURE™ line is available in four allergen-free fragrances: Clean Breeze, Ocean Mist, Nighttime Calm, and Energizing Citrus, aimed at enhancing home comfort while neutralizing allergens [5][9] - The sprays are suitable for use in various living spaces and on soft surfaces, including carpets and upholstered furniture, to effectively neutralize allergens and freshen fabrics [9] Market Positioning - Clorox emphasizes its commitment to consumer wellness and simplifying the management of household allergens, leveraging over 100 years of trust in homecare expertise [6][10] - The product is now available for purchase at major retailers, including Walmart and Amazon, indicating a strategic move to capture a broader market segment [7]

Core Insights - The Clorox Company (NYSE:CLX) is recognized as one of the 13 Best Consumer Staples Dividend Stocks to invest in currently [1] - Wells Fargo has reduced its price target for Clorox from $117 to $108 while maintaining an Equal Weight rating, reflecting updated models for 2026 [2] - Clorox reported stronger-than-expected first-quarter results, with adjusted earnings of $0.85 per share, surpassing estimates of $0.79 [3] - Despite a 19% revenue decline to $1.43 billion, Clorox's revenue still exceeded expectations of $1.40 billion, attributed to anticipated lower shipments due to inventory adjustments [4] - The company has maintained its full-year outlook, expecting sales to decrease between 6% and 10%, with adjusted earnings projected at $5.95 to $6.30 per share [5] - Clorox has a solid dividend payout ratio of around 72% of next year's earnings estimates, supported by a strong balance sheet, and aims for 3% to 5% annual sales growth [5]

Core Viewpoint - Clorox's significant stock sell-off has been excessive, presenting a potential value opportunity for contrarian investors in 2026, especially given its current dividend yield of 4.9% [1][11]. Company Challenges - Clorox has faced self-inflicted challenges alongside broader sector slowdowns, including consumer spending declines and cost pressures from inflation and tariffs [2]. - The company is undergoing a multiyear turnaround focused on maximizing brand value and enhancing internal processes to reduce costs and improve margins [3]. Transition Period - Clorox is in a transition phase as it implements a new enterprise resource planning (ERP) system, which has led to outdated operations and vulnerabilities, including a cyberattack in 2023 [4]. - The ERP transition has resulted in unusually high shipments to retail partners, leading to reduced demand at the start of fiscal 2026, with projected organic sales growth declining by 5% to 9% [5]. Market Position and Brand Strength - Clorox's brands are predominantly category leaders, with approximately 80% of its brands ranking No. 1 or No. 2 in their respective categories, which positions the company well to adapt to changing consumer preferences [10]. - The company is addressing affordability concerns by offering smaller packaging and bulk options to consumers facing financial pressures [9]. Financial Health and Dividend Policy - Clorox has a strong dividend history, having raised its quarterly dividend to $1.24 per share, marking the 48th consecutive annual increase, and is on track to become a Dividend King by 2027 [12]. - The company's earnings and free cash flow continue to exceed dividend expenses, with a manageable total net long-term debt of less than $3 billion and a debt-to-equity ratio of 0.2 [13]. Investment Outlook - Despite current lackluster growth and weak near-term expectations, Clorox presents a high-yield investment opportunity for patient investors with a long-term horizon [16]. - The company's recent strategic decisions, including the ERP transition and divestments, may position it for future growth when consumer spending rebounds [17].

Industry Overview - Consumer staples underperformed in 2025, with the S&P 500 Consumer Staples index gaining about 3%, while the overall S&P 500 rose more than 16% [1] - The underperformance was attributed to investor focus shifting towards AI-driven growth stocks, leaving defensive names behind, alongside changing consumer behavior and concerns regarding GLP-1 weight-loss drugs affecting demand for certain foods and beverages [2] Future Outlook - The outlook for the consumer staples sector appears more favorable moving forward, with expectations of benefiting from lower interest rates and easing headwinds [3] - The One Big Beautiful Bill Act, passed in July, is anticipated to increase incomes for middle-income consumers, potentially supporting discretionary spending [3] Sector Challenges - Specific challenges in the sector, such as the pullback in alcohol consumption and the pace of GLP-1 adoption, seem to be stabilizing, reducing risks for alcohol-exposed businesses and easing pressure on parts of the food and beverage space [4] Investment Opportunities - A steadier environment for consumer staples is expected in 2026, with fewer disruptive forces and a more stable consumer spending backdrop, prompting a review of the best consumer staples dividend stocks to invest in [5] Company Highlights - **The Clorox Company (NYSE:CLX)**: - Number of hedge fund holders: 37 - Dividend yield as of January 7: 4.87% - Reported adjusted earnings of $0.85 per share, beating estimates of $0.79, despite a 19% revenue drop to $1.43 billion [9][11][12] - Maintained full-year outlook with expected sales decline of 6% to 10% and adjusted earnings projected at $5.95 to $6.30 per share [13] - **Kimberly-Clark Corporation (NASDAQ:KMB)**: - Number of hedge fund holders: 42 - Dividend yield as of January 7: 5.17% - Stock dropped over 22% in 2025 due to challenges in core categories, particularly in the diaper business [15][16] - Planned acquisition of Kenvue for $48.7 billion may reshape the business mix and improve income profile [17] - **Church & Dwight Co., Inc. (NYSE:CHD)**: - Number of hedge fund holders: 44 - Dividend yield as of January 7: 1.41% - Completed a strategic review and announced the sale of its vitamins, minerals, and supplements business, which is expected to have a limited impact on overall business [19][20][21]

Company Overview - The Clorox Company (CLX) has a market capitalization of $12.3 billion and operates in four segments: Health and Wellness, Household, Lifestyle, and International, offering a diverse portfolio of consumer and professional products [1] Upcoming Earnings - Clorox is expected to announce its fiscal Q2 2026 results soon, with analysts predicting an adjusted EPS of $1.46, which represents a 5.8% decrease from $1.55 in the same quarter last year [2] - For fiscal 2026, analysts forecast an adjusted EPS of $5.87, a nearly 24% decline from $7.72 in fiscal 2025, but expect a rebound to $6.75 in fiscal 2027, reflecting a nearly 15% year-over-year increase [3] Stock Performance - Over the past 52 weeks, Clorox shares have declined by 37.7%, underperforming the S&P 500 Index, which rose by 16.9%, and the State Street Consumer Staples Select Sector SPDR ETF, which experienced a slight drop [4] - Following the Q1 2026 results announcement on November 3, Clorox shares rose by 1.2% after reporting adjusted earnings of $0.85 per share, exceeding Wall Street's estimates, with revenue of $1.43 billion despite a 19% year-over-year decline due to ERP-related shipment issues [5] Analyst Ratings - The consensus view among analysts on Clorox stock is cautious, with a "Hold" rating overall; of the 18 analysts covering the stock, one recommends "Strong Buy," 13 suggest "Hold," and four advise "Strong Sell" [6] - The average analyst price target for Clorox is $121.62, indicating a potential upside of 20.6% from current levels [6]

Core Insights - The "High Income DIY Portfolios" service aims to provide high income with low risk and capital preservation for DIY investors, particularly targeting income investors such as retirees [1] - The service offers a total of 10 model portfolios, including various strategies for income generation and risk management, with a focus on sustainable yields [2] Group 1: Portfolio Strategies - The service includes seven portfolios: three buy-and-hold, three rotational portfolios, and a conservative NPP strategy portfolio designed for low drawdowns and high growth [1] - The investment approach emphasizes dividend-growing stocks and aims for a 30% reduction in drawdowns while targeting a 6% current income [2] Group 2: Additional Features - The service provides buy and sell alerts, live chat, and strategies for portfolio management and asset allocation to help investors achieve stable, long-term passive income [2]