Clorox Co

With Clorox announcing an increased stock dividend, is CLX a worthy investment? What can investors expect from the stock?

Procter & Gamble (PG) posted stronger-than-expected third-quarter results on Tuesday, April 23.

Net sales in North America fell 5.0% in 1Q17, reflecting a strong decline in volumes coupled with lower pricing.

Colgate-Palmolive (CL) has a market capitalization of $60.9 billion. CL rose by 0.37% to close at $68.23 per share as of March 10, 2016.

Procter & Gamble (PG) is set to release its fiscal 3Q16 earnings before the Markets open on April 26, 2016. In fiscal 2Q16, P&G missed revenue estimates for the fifth consecutive quarter.

For distribution in the United States, Clorox (CLX) sells or markets its products primarily through mass retail outlets, e-commerce channels, wholesale distributors, and medical supply distributors.

P&G plans to focus on superior brands in the 10 product categories in its portfolio. It expects one-third of them to surpass $1 billion in annual sales.

The COVID-19 pandemic boosted Clorox’s sales. People started paying more attention to cleaning and sanitizing.

The defensive nature of Procter & Gamble stock and its strong dividends make it a good buy in a challenging market environment.

Analysts are optimistic about Walmart (NYSE:WMT) even though the US stock market crashed due to the coronavirus outbreak.

Clorox stock rose 4.1% on March 16, even though the US stock market crashed amid the coronavirus pandemic. JPMorgan Chase upgraded its rating.

Procter & Gamble stock has generated a significant amount of wealth for investors this year. The company boosted shareholders’ returns.

On September 23, Barclays analyst Lauren Lieberman upgraded Kimberly-Clark (KMB) stock and downgraded the Clorox Company (CLX) stock.

Clorox stock (CLX) is down about 8% since the company posted its third quarter of fiscal 2019 earnings on May 1.

Clorox (CLX) posted net sales of $1.55 billion, which fell short of Wall Street’s estimate of $1.57 billion.

Clorox (CLX) posted net sales of $1.47 billion during the second quarter.

Procter & Gamble (PG) stock trades at 20.8x its estimated fiscal 2019 EPS of $4.41, which doesn’t look attractive.

I bet you may have heard a lot about investing defensively while the market faded.

The consumer non-cyclical segment recorded a dividend yield of 3%.

As of November 24, 2017, Colgate-Palmolive (CL) stock was trading at a forward PE multiple of 24.0x, which is higher than its peers.

The majority of analysts providing recommendations on Colgate-Palmolive (CL) stock maintain a neutral outlook.

CL’s organic sales in its North American segment remained flat in 4Q16. Volume gains in toothpaste were offset by a fall in toothbrushes and liquid hand soap.

Analysts expect Colgate-Palmolive (CL) to post revenue of $3.8 billion in 1Q17, which would represent a YoY (year-over-year) growth of 0.8%.

WestRock (WRK) reported fiscal 1Q17 net sales of $3.45 billion, a fall of 0.7% compared to net sales of $3.47 billion in fiscal 1Q16.

Procter & Gamble (PG) is trying to boost its sales through a continued focus on innovation. It spent $1.9 billion on research and development in fiscal 2016.

Consumer packaged goods (or CPG) companies are trading at higher valuations compared to the S&P 500 Index (IVV) (SPY) (VOO) and the Dow Jones Industrial Average (DIA).

Church & Dwight (CHD) has a market cap of $12.7 billion. It fell by 0.74% to close at $99.14 per share on June 13, 2016.

Colgate-Palmolive’s global market share is ~45%. It is the leading toothpaste compared to Oral-B and Close-up, especially in emerging markets like India.

After a lawsuit was filed against Procter & Gamble (PG), or P&G, for its Old Spice deodorant, P&G’s stock price opened with a fall of 0.4% to $82.46 on March 24, 2016.

As of March 17, 2016, CPG companies were trading at higher valuations relative to the S&P 500 Index (SPY) and the Dow Jones Industrial Average (DIA).

Colgate’s (CL) revenue declined 7.5% to $3.9 billion in 4Q15. The reported revenue was negatively impacted by foreign exchange and divestitures.

CPG companies’ 3Q15 margins sent strong signals. They have been investing in innovative products and other growth initiatives. This is impacting their margins.

Clorox (CLX) has a strong research and development (or R&D) team and devotes significant resources and attention to product development.

Advertising and promotional events from Unilever and PG’s home cleaners and a rise in the popularity of store brands pose threats to Clorox.

Clorox’s Lifestyle segment’s revenue increased 1.5% to $1 billion in fiscal 2015 compared to $0.9 billion in fiscal 2014. The increase was primarily due to higher shipments in natural personal care.

The Cleaning segment contributed 32.3% to the total consolidated sales of Clorox, the highest among all the segments. The increase was primarily due to higher volume growth.

Clorox’s (CLX) SG&A expenses increased 5.3% in fiscal 2015 compared to fiscal 2014. The increase was primarily due to increased advertising and marketing programs.

Due to Clorox’s diverse product portfolio and the competitive nature of the consumer products market, it’s difficult for a new company to compete with similar products.oducts.

P&G plans to focus on stronger, consumer meaningful brands—brands with which P&G has the leading market position—and accordingly chooses its portfolio.

In order to attract consumers in retail stores, Colgate has increased its commercial investment in advertising, promotions, trade spending, and creative brand building.

Colgate’s funding-the-growth technique is the key component of the company’s financial strategy, according to comments by Ian Cook, the company’s CEO.

Colgate has the highest brand penetration in the world. At a brand penetration rate of 64.6%, Colgate reaches more than half the households in the world, more than even Coca-Cola.

A strong market position and brand image are some of Colgate’s chief strengths. Colgate holds 44.4% of the global market share in toothpaste.

Colgate estimated its share of the global toothpaste market and the global manual toothbrush market at 44.4% and 33.4%, respectively, in 2014.

In North America, innovations in the Colgate Optic White Franchise increased market share of toothpaste from 5.3% to 5.6% in 2014.

Colgate’s stock price has always been fairly stable primarily due to its oral care business.

Colgate-Palmolive is a multinational consumer staples (XLP) firm, focused on the production, distribution, and provision of household products.

In an effort to partially digitize its supply chain, P&G has introduced an automated re-ordering system. It maintains a count of inventory in stores and relays the information to its suppliers.