Beyond The Numbers: 6 Analysts Discuss Clorox Stock

Ratings for Clorox CLX were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $148.67, a high estimate of $170.00, and a low estimate of $118.00. Witnessing a positive shift, the current average has risen by 13.27% from the previous average price target of $131.25.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Clorox among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Clorox. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Clorox compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Clorox's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Clorox's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Clorox analyst ratings.

Unveiling the Story Behind Clorox

Since its inception more than 100 years ago, Clorox has grown to play in a variety of categories across the consumer products space, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water-filtration products, and natural personal-care products. Beyond its namesake brand, the firm's portfolio includes Liquid-Plumr, Pine-Sol, S.O.S, Tilex, Kingsford, Fresh Step, Glad, Hidden Valley, KC Masterpiece, Brita, and Burt's Bees. Just shy of 85% of Clorox's sales stem from its home turf.

Clorox: Financial Performance Dissected

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Clorox displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 16.04%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Clorox's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.67%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Clorox's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1162.5%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.56%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 59.04, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.