Rise in price of Clorox
Clorox (CLX) is set to announce its fiscal 2Q16 earnings after the market opens on February 4, 2016.
Clorox was trading at $125.04 on January 25, 2016. Its stock price has risen 20.4% since January 2, 2015. In comparison, the benchmark S&P 500 Index (SPY) (IVV) (VOO) has fallen 8.8% since January 2, 2015.
Clorox’s stock has consistently risen since the beginning of 2015. However, the stock fell almost 7.3% to $109.60 on September 4, 2015, from $118.21 on August 7, 2015. The fall was primarily due to currency headwinds and the fall in global markets, particularly in the Asia-Pacific region. However, the stock was able to sustain most of its gains until December 4, 2015, when it touched its peak of $128.78.
In fiscal 1Q16, Clorox repurchased about 1 million shares of its common stock at a cost of ~$112 million to offset stock-option dilution. Clorox’s debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio was 1.8x, below its target range of 2x–2.5x in fiscal 1Q16.
Stronger US dollar
With the ongoing strengthening of the US dollar, Clorox plans to closely monitor the possibility of worsening exchange rates. In addition to the positive uptrend seen in its market share, Clorox plans to explore heightening its competitive activity in the second half of fiscal 2016. This will be in key categories such as bags and wraps, litter, and home care.
CLX has a weight of 0.9% in the PowerShares S&P 500 High-Quality ETF (SPHQ).[1. Updated as of January 25, 2016]