Core Insights - The Clorox Company, based in Oakland, California, has a market capitalization of $14.5 billion and is known for its well-established brands such as Clorox, Pine-Sol, Glad, Burt's Bees, and Hidden Valley [1] Performance Overview - Over the past 52 weeks, Clorox shares have declined by 18.1%, underperforming the S&P 500 Index, which increased by 15.6%. However, year-to-date (YTD), Clorox stock is up 19.5%, outperforming the S&P 500's 1.7% return [2] - Clorox has also underperformed the State Street Consumer Staples Select Sector SPDR ETF (XLP), which rose by 9.1% over the past 52 weeks, but has outpaced XLP's 12.2% YTD increase [3] Earnings Report - On February 3, Clorox shares rose by 1.5% following a mixed Q2 earnings release. The company's revenue slightly decreased year-over-year to $1.7 billion but exceeded Wall Street expectations by 2.5%. Adjusted EPS fell by 10.3% from the previous year to $1.39, missing analyst expectations of $1.43 [4] Future Earnings Expectations - For the current fiscal year ending in June, analysts project Clorox's EPS to decline by 23.3% year-over-year to $5.92. The company's earnings surprise history is mixed, with two out of the last four quarters exceeding consensus estimates and two missing [5] Analyst Ratings - Among 18 analysts covering Clorox, the consensus rating is a "Hold," consisting of one "Strong Buy," 13 "Hold," and four "Strong Sell" ratings [5] - Morgan Stanley analyst Dara Mohsenian maintained a "Hold" rating on Clorox with a price target of $136, indicating a potential upside of 12% from current levels. The company is currently trading above its mean price target of $116.27, while the highest price target of $151 suggests a potential upside of 24.3% [7]

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]

Core Insights - Clorox Company is increasing brand investments to enhance demand creation strategies, including higher trade spending and advertising, despite ERP-related disruptions [1][4] - The company is focused on innovation across major brands, with new product launches planned for the second half of fiscal 2026 [2] - Clorox's net sales fell 19% year over year to $1.43 billion in Q1 FY26, with organic sales decreasing 17% due to lower shipments related to the ERP transition [3][8] - For fiscal 2026, Clorox projects a net sales decline of 6-10% and organic sales to fall 5-9%, reflecting ongoing short-term pressures [3][8] - The company maintains advertising and promotional spending at approximately 11% of net sales to support long-term brand growth [4][8] Financial Performance - Clorox's shares have decreased by 16.4% over the past six months, compared to an industry decline of 11.9% [5] - The forward price-to-earnings ratio for Clorox is 16.35, which is lower than the industry average of 17.63 [7] - The Zacks Consensus Estimate indicates a 24% year-over-year decline in Clorox's fiscal 2026 earnings, but a projected rise of 15.8% in fiscal 2027 earnings [9]

Core Insights - The article discusses consumer stocks with high-yielding dividends and a history of payout increases, highlighting the balance between dividend yield and associated risks [1][2]. Group 1: Realty Income - Realty Income is known as the "monthly dividend company," owning over 15,600 single-tenant, net-leased properties, allowing it to avoid income tax on operational income by distributing over 90% of net income as dividends [3][4]. - The company has consistently increased its monthly dividend since 1994, currently offering an annual dividend of over $3.23 per share, translating to a cash return of over 5.3% [4][8]. - Realty Income faced challenges during the pandemic and rising interest rates, leading to a stock price discount of approximately 24% from its early 2020 high [5][6]. - With declining interest rates, Realty Income is positioned to reduce costs and expand, trading at about 15 times its funds from operations (FFO) income of $4.11 per share [7][8]. Group 2: Clorox - Clorox, known for its cleaning products, experienced a surge in demand during the pandemic but has since faced a decline in stock price, trading at about a 50% discount from its all-time high [9][11]. - The company has been impacted by a cyberattack in 2023, disrupting its supply chain and leading to product shortages [10][11]. - Despite these challenges, Clorox maintains a history of dividend increases, currently offering an annual payout of $4.96 per share, resulting in a dividend yield of over 4.1% [13][14]. - Clorox's price-to-earnings ratio is 18, below the S&P 500 average of 31, making it attractive for dividend investors seeking potential stock-price appreciation [13][14][15].

Company Overview - The Clorox Company (CLX) has a market cap of $14.9 billion and is a leading global manufacturer and marketer of consumer and professional products, operating through four segments: Health and Wellness, Household, Lifestyle, and International [1] - Clorox's product offerings include trusted brands such as Clorox, Pine-Sol, Glad, Kingsford, Hidden Valley, Brita, and Burt's Bees, sold across various channels including mass retailers, grocery stores, and e-commerce platforms [2] Stock Performance - CLX shares have decreased by 29.3% from their 52-week high of $171.37, while the stock has seen a marginal rise over the past three months, outperforming the Consumer Staples Select Sector SPDR Fund (XLP), which declined by 3.3% [3] - Year-to-date, CLX stock is down 25.4%, which is a more significant decline compared to XLP's slight drop, and over the past 52 weeks, CLX shares have decreased by 25.9%, while XLP dipped by 5.7% [4] Financial Performance - Clorox reported a stronger-than-expected Q4 2025 adjusted EPS of $2.87 and net sales of $1.99 billion; however, shares fell nearly 2% the following day due to a weak FY2026 outlook [5] - The company anticipates a decline in net sales by 6% to 10% and organic sales by 5% to 9%, primarily due to a reversal of incremental ERP shipments that had previously boosted fiscal 2025 results [5] - EPS is projected to fall sharply to between $5.60 and $5.95, with adjusted EPS expected to be between $5.95 and $6.30, reflecting an 18% to 23% decline [5] Analyst Sentiment - Analysts are cautious about Clorox's prospects, with a consensus rating of "Hold" from 19 analysts, and a mean price target of $132.44, indicating a premium of 9.6% to current levels [6]

Core Insights - The Clorox Company reported lower-than-expected sales for the third quarter of fiscal year 2025, with net sales decreasing by 8% to $1.67 billion, primarily due to divestitures and a challenging consumer environment [1][5][3] - Despite the sales decline, the company maintained overall market shares and achieved its tenth consecutive quarter of gross margin expansion, increasing gross margin by 240 basis points to 44.6% [1][5][6] - The company expects continued organic sales growth and strong earnings growth for the fiscal year, despite macroeconomic uncertainties impacting shopping behaviors [3][8] Financial Performance - Net sales decreased 8% to $1.67 billion, with organic sales down 2% due to unfavorable price mix and flat organic volume [5][6] - Diluted EPS increased 466% to $1.50 from a loss of $0.41 in the prior year, influenced by the lapping of losses from divestitures and cyberattack insurance recoveries [5][6] - Adjusted EPS decreased 15% to $1.45 from $1.71, primarily due to lower net sales, partially offset by higher gross margin [5][6] Strategic and Operational Highlights - The company maintained market shares despite complex geopolitical and macroeconomic conditions and continued to invest in product innovations [6][3] - Clorox achieved zero-waste-to-landfill status across all global manufacturing plants where infrastructure allows [6] - The company introduced several new products, including Burt's Bees Boosted Tinted Balm and Clorox Scentiva ToiletWand Refills, to meet consumer needs [6] Fiscal Year 2025 Outlook - The company updated its fiscal year 2025 outlook, expecting net sales to be down 1% to flat, with organic sales growth projected at 4% to 5% [9][13] - Diluted EPS is expected to range between $5.73 and $6.13, reflecting a year-over-year increase of 155% to 172% [10][13] - The outlook includes anticipated benefits from incremental shipments related to the company's ERP transition, expected to contribute 2% to 3% to organic sales growth [9][13]