Clorox Stock Rises 23% in Six Months: Is it Time to Buy or Avoid?

Core Viewpoint - Clorox Company (CLX) is positioned for growth due to effective growth strategies, pricing, and cost-saving initiatives that enhance gross margins [1][5][11] Financial Performance - Over the past six months, CLX shares have increased by 23.1%, outperforming the Consumer Staples sector's decline of 1.4% and the Zacks Consumer Products - Staples industry's decline of 1.9% [2] - The stock also exceeded the S&P 500 index's appreciation of 11.8% during the same period [2] Growth Strategies - Clorox is focused on strengthening its competitive advantage and accelerating profitable growth through a streamlined operating model aimed at improving efficiency [4] - The company has achieved its eighth consecutive quarter of gross margin expansion, with a year-over-year increase of 740 basis points in the first quarter of fiscal 2025 [5] - Clorox is on track to fully restore its gross margin by fiscal 2025 [5] - The divestment of its Better Health Vitamins, Minerals and Supplements business is part of Clorox's strategy to lower volatility and enhance profitable growth [6] Earnings Estimates - The Zacks Consensus Estimate for Clorox's fiscal 2025 earnings per share (EPS) has increased by 0.3% to $6.87 in the past 30 days, with a similar increase for fiscal 2026 EPS to $7.19 [7] - For fiscal 2025, the EPS estimate implies an 11.4% year-over-year growth, while fiscal 2026 estimates indicate a 2.2% increase in sales and a 4.7% increase in EPS [9] Valuation - Clorox stock is currently trading at a forward price/earnings ratio of 22.69, which is higher than the industry average of 21.11 [10] Overall Assessment - Clorox is advancing its IGNITE strategy, focusing on innovation and expansion across its business areas, and has seen positive results in recent quarters [11]