Clorox (CLX) closed the most recent trading day at $211.35, moving +0.35% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Heading into today, shares of the consumer products maker had lost 0.83% over the past month, lagging the Consumer Staples sector's gain of 2.06% and the S&P 500's gain of 3.82% 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. The company is expected to report EPS of $2.34, up 47.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.75 billion, up 16.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $6.97 billion, which would represent changes of +4.76% and +3.76%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CLX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.59% lower. CLX is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, CLX currently has a Forward P/E ratio of 27.33. Its industry sports an average Forward P/E of 24.43, so we one might conclude that CLX is trading at a premium comparatively.
Meanwhile, CLX's PEG ratio is currently 4.82. 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. CLX's industry had an average PEG ratio of 4.7 as of yesterday's close.
The Soap and Cleaning Materials industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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