Clorox stock dropped 12% in 6 months due to revenue decline and challenges

From Nasdaq: 2025-04-10 13:14:00

The Clorox Company (CLX) faces challenges, with a 12.1% stock price drop in the past six months, underperforming the industry and Consumer Staples sector. CLX closed at $139.82, below its SMAs, and lagged competitors like Colgate-Palmolive (CL) and Procter & Gamble (PG). Concerns arise over temporary setbacks or deeper issues affecting CLX’s performance.

In Q2 of fiscal 2025, Clorox exceeded earnings estimates but saw a 15% revenue decline due to decreases in key segments. Ongoing macroeconomic challenges, cost inflation, and divestitures like Better Health Vitamins impacted top-line performance. Management projects cautious growth for fiscal 2025, with net sales estimates between -1% and 2%.

Clorox’s EPS estimates show stability for fiscal 2025 at $7.15 and a slight drop for fiscal 2026 to $7.08. The company’s IGNITE strategy focuses on profitable growth through innovation and efficiency, aiming to drive long-term success. Clorox’s valuation at a P/E ratio of 19.71 presents a potential buying opportunity, trading below industry averages.

Despite recent stock declines, Clorox’s strong brand positioning, streamlined operations, and growth strategies offer potential. However, soft sales momentum, negative estimate revisions, and cautionary technical indicators suggest a prudent approach for new investors. Clorox holds a Zacks Rank #3 (Hold), and further analysis is advised before considering investment.



Read more at Nasdaq: Here’s How You Should Play Clorox Stock After a 12% Drop in 6 Months