Analysts remain neutral
Clorox’s (CLX) top line is expected to benefit from new product launches backed by innovation and efficient marketing. Moreover, the company’s unique ability to increase pricing, its focus on cost-saving measures, and benefits from lower corporate tax rates are anticipated to drive its EPS growth.
However, most of the analysts covering Clorox stock maintain a “neutral” view, as near-term challenges stemming from retailers restructuring their inventory and cost pressures due to the inflation in raw material prices and increased logistics costs are expected to remain a drag.
Of the 17 analysts covering the stock, 88.0% maintained a “hold” rating, and 12.0% have a “buy” recommendation. Meanwhile, Clorox stock closed at $128.53 on February 13, 2018, which implies an upside potential of 9.0% to the analysts’ 12-month price target of $140.14 per share.
Analysts also maintain a neutral outlook on the prospects of other major household and personal care product makers in the US including Kimberly-Clark (KMB), Church & Dwight (CHD), Procter & Gamble (PG), and Colgate-Palmolive (CL).
Clorox stock price movement
Stock prices of consumer product manufacturers in the US are trading in the red as weak volume trends, lower net price realization, cost pressures, and rising interest rates keep investors at bay. As for Clorox, the company’s stock is down about 13.6% on a YTD (year-to-date) basis as of February 13, 2018, reflecting near-term sales and margin headwinds.
Meanwhile, stocks of Procter & Gamble, Colgate-Palmolive, Church & Dwight, and Kimberly-Clark registered a decline of 11.3%, 6.8%, 3.0%, and 6.6%, respectively. The S&P 500 Index (SPX-INDEX) recorded a marginal decline on a YTD basis.