Clorox (NYSE:CLX) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Clorox to “strong sell” from “hold” and projects fiscal 2027 earnings of $5.53 per share. The broader analyst consensus is “Reduce,” with 11 Hold and five Sell ratings and an average price target of $93.57.
• Clorox shares opened at $88.01, near their 52-week low of $79.12 and well below the 52-week high of $128.90. The stock has declined relative to its 200-day moving average of $100.01.
• The company’s latest quarterly results modestly exceeded expectations, with $1.66 EPS and $1.95 billion in revenue, but revenue fell 2% year over year and EPS dropped from $2.87 in the prior-year quarter. Investors also face ongoing concerns about margins, consumer demand, cash flow and dividend sustainability.

Clorox (NYSE:CLX - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Thursday, Zacks reports. Zacks Research also issued estimates for Clorox's Q1 2027 earnings at $0.91 EPS, Q2 2027 earnings at $1.30 EPS, Q3 2027 earnings at $1.56 EPS, Q4 2027 earnings at $1.77 EPS and FY2027 earnings at $5.53 EPS.

Several other brokerages have also recently weighed in on CLX. Wall Street Zen cut shares of Clorox from a "hold" rating to a "sell" rating in a research note on Saturday, October 3rd. BNP Paribas Exane dropped their price objective on shares of Clorox from $97.00 to $95.00 and set a "neutral" rating for the company in a report on Monday, July 20th. Jefferies Financial Group cut shares of Clorox from a "buy" rating to a "hold" rating and cut their target price for the company from $125.00 to $98.00 in a research note on Tuesday, July 28th. Evercore set a $99.00 target price on Clorox in a report on Tuesday, August 4th. Finally, UBS Group set a $91.00 price target on Clorox in a research report on Thursday, October 15th. Eleven research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $93.57.

Clorox Stock Down 0.7%

Shares of NYSE CLX opened at $88.01 on Thursday. The stock has a market cap of $10.64 billion, a PE ratio of 18.26, a PEG ratio of 2.97 and a beta of 0.59. The business has a fifty day moving average of $88.61 and a two-hundred day moving average of $100.01. Clorox has a 52-week low of $79.12 and a 52-week high of $128.90. The company has a debt-to-equity ratio of 15.80, a quick ratio of 0.38 and a current ratio of 0.66.

Clorox (NYSE:CLX - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.64 by $0.02. The business had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.91 billion. Clorox had a net margin of 8.74% and a return on equity of 522.23%. The firm's quarterly revenue was down 2.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.87 EPS. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS. As a group, equities research analysts expect that Clorox will post 5.66 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Clorox

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pension & Wealth Management Advisors Inc. bought a new position in Clorox during the 3rd quarter worth about $26,000. Ancora Advisors LLC acquired a new stake in shares of Clorox in the 2nd quarter valued at about $28,000. Avalon Trust Co bought a new stake in shares of Clorox in the second quarter valued at about $29,000. Markowski Investments bought a new stake in shares of Clorox in the second quarter valued at about $30,000. Finally, Barrett & Company Inc. boosted its position in shares of Clorox by 86.0% during the third quarter. Barrett & Company Inc. now owns 372 shares of the company's stock worth $30,000 after buying an additional 172 shares during the period. Institutional investors and hedge funds own 78.53% of the company's stock.

More Clorox News

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: New CEO appointed: Clorox named Fabian Garcia, a veteran consumer-products executive from Unilever, as CEO and chair effective January 5, 2027. His experience could help strengthen brand execution and support a turnaround after a comprehensive search. Matthew Shattock will resume his role as independent chair, while Linda Rendle is stepping down for health reasons. Clorox Appoints Fabian Garcia as CEO
• Positive Sentiment: Potential earnings support: Analysts expect fiscal first-quarter 2027 results to benefit from product innovation, brand investments and the contribution from GOJO, the hand-care business acquired by Clorox. A stronger-than-expected report could provide a near-term catalyst. Clorox's Q1 Earnings Coming Up: Key Insights for Investors
• Neutral Sentiment: Valuation is being debated: Recent commentary suggests CLX may be fairly valued based on expected earnings, while the incoming CEO could make the stock appear inexpensive if he improves growth and profitability. Investors are likely to focus on guidance and the pace of recovery rather than valuation alone. Clorox Stock Looks About Right Based on Earnings
• Negative Sentiment: Profitability and dividend risks remain: Higher costs, cautious consumer spending and potential pressure on margins may limit the benefit from innovation and GOJO. Analysts also view the dividend as facing a more difficult test, making cash flow and management’s outlook key issues in the earnings release. Clorox: An Easy Quarter Ahead, But a Harder Test for the Dividend

Clorox Company Profile

The Clorox Company, founded in 1913 and headquartered in Oakland, California, is a consumer and professional products company. It began with household bleach and has expanded into a portfolio of brands serving cleaning, household, personal care, food, and professional markets.

Its brands include Clorox disinfecting and cleaning products, Pine-Sol cleaners, Liquid-Plumr drain care, Kingsford charcoal, Fresh Step and Scoop Away cat litter, Hidden Valley dressings and dips, Brita water filtration products, and Burt's Bees personal care items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.