Summary
Clorox shares have lost 3.7% in the past month, underperforming the S&P 500. Will this trend continue leading up to its next earnings release, or is Clorox due for a breakout? This article examines the recent performance of Clorox and provides insight into how investors and analysts have reacted.
Recent Performance
A month has passed since Clorox’s last earnings report, and shares have experienced a decline in value. The stock’s price movement can be attributed to various factors, including changes in investor sentiment and market conditions. In order to better understand the current state of Clorox, it is essential to review its most recent earnings report.
Estimate Revisions
Estimates for Clorox have been trending upward over the past month. This shift in sentiment can be attributed to a combination of factors, including changes in market conditions and investor expectations. The magnitude of these revisions looks promising, indicating that investors are becoming increasingly optimistic about the stock’s future performance.
VGM Scores
Clorox has an average Growth Score of C, placing it in the middle tier of stocks within its category. However, the stock is lagging on the Momentum Score front with a D and also received a grade of D on the value side, putting it in the bottom 40% for this investment strategy. The overall VGM Score for Clorox is D, indicating that the stock has struggled to meet investor expectations.
Outlook
Despite the upward trend in estimate revisions, Clorox’s Zacks Rank remains at #4 (Sell). This ranking suggests that investors can expect a below-average return from the stock in the next few months. The magnitude of these revisions is promising, but it may not be enough to offset the stock’s current valuation.
Performance of an Industry Player
Clorox operates within the Zacks Consumer Products – Staples industry. A key competitor in this sector is Procter & Gamble (PG), which has experienced a gain of 4.8% over the past month. P&G reported its quarterly results more than a month ago, with revenues of $19.78 billion representing a year-over-year change of -2.1%. EPS for the same period was $1.54 compared to $1.52 a year ago.
Estimate Revisions for Industry Player
The Zacks Consensus Estimate for P&G has changed by -0.6% over the last 30 days, indicating a slight decrease in investor expectations. For the current quarter, P&G is expected to post earnings of $1.42 per share, representing a change of +1.4% from the year-ago quarter.
Industry Player’s VGM Score
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for P&G. Additionally, the stock has a VGM Score of D, placing it in the bottom 40% for this investment strategy.
Conclusion
In conclusion, Clorox shares have lost value over the past month, underperforming the S&P 500. The recent negative trend may continue leading up to its next earnings release, or Clorox may be due for a breakout. Estimating revisions have been trending upward, but the stock’s Zacks Rank remains at #4 (Sell). A comparison with industry player Procter & Gamble highlights the challenges faced by Clorox in meeting investor expectations.
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