By examining key indicators for Clorox and Hormel, you can see how market swings impact their stock prices and whether combining them could help reduce overall risk. Pair trading is another option—going long on Hormel while shorting Clorox might offer a strategic edge. For more details, check out our
pair correlation tool.
Focusing on asset efficiency, Clorox’s asset utilization ratio stands at 127.75%. This means the company generates about $1.28 in revenue for every dollar of assets, indicating improved operational efficiency. A rising ratio signals Clorox is getting better at turning assets into sales, which is a positive sign for investors.
Main Takeaways
Recent data suggests that retail investors might be showing increased interest in Clorox (NYSE: CLX), especially as its stock trades near the 52-week low of
110.61. With a market cap of
13.7 billion and institutional ownership at over 90%, some traders see potential value, particularly given the company's solid gross profit of
3.2 billion and a target price of
129.88. However, the company's current ratio of 0.88X and a probability of bankruptcy at 11.29% warrant caution, making it essential to weigh the risk-reward carefully before jumping in.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Clorox. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Clorox, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Clorox's Liquidity
Clorox
financial leverage refers to using borrowed capital as a funding source to finance The Clorox ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Clorox financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Clorox's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Clorox's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Clorox's total debt and its cash.
Clorox Gross Profit
Clorox Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Clorox previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Clorox Gross Profit growth over the last 10 years. Please check Clorox's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Clorox
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Clorox revenue. Based on the latest financial disclosure, The Clorox reported 7.1
B of revenue.
This is 52.18% lower than that of the Household Products sector and 38.89% lower than that of the
Consumer Staples industry. The revenue for all United States stocks is 24.7% higher than that of Clorox. As for Hormel Foods we see revenue of 11.92
B, which is 2.55% higher than that of the Consumer Staples
| Clorox | 7.1 Billion |
| Sector | 9.43 Billion |
| Hormel | 11.92 Billion |
A rising tide lifts all boats, and recent data suggests retail investors may be showing increased interest in Clorox (NYSE: CLX). Despite a modest short interest of 0.06%, the stock's current valuation at around 17.67 billion dollars and a target price of 129.88 dollars indicate potential upside, with a possible 1.8% gain. Clorox's steady revenue growth of 4.5% per quarter and a solid net income of 824 million dollars reflect resilience in the household and personal products industry. With institutional ownership at over 90%, retail investors might be catching on to the company's stable fundamentals, especially as the stock trades well below its 52-week high of 165.17 dollars. Given the company's low beta of 0.52 and a price-to-earnings ratio of 45.43X, Clorox appears to be a cautious yet promising pick for those looking for defensive plays with room for modest appreciation..
Clorox showing appearance of lower volatility
Clorox’s recent performance shows a slight decline in risk-adjusted returns, now at -0.06, indicating a period of reduced volatility that makes the stock seem more stable. However, caution is warranted, as the price could dip again. While the calmer trend might look reassuring, it's important to stay alert for signs of potential turbulence. The stock’s low volatility, with a skewness of -0.49 and kurtosis of 0.65, suggests limited price swings, but during downturns, volatility tends to spike, which can put pressure on Clorox’s share price.
Such shifts often prompt investors to rebalance their portfolios, shifting into different assets as prices fluctuate. Keeping an eye on volatility patterns can help traders better gauge risk and prepare for possible market swings ahead.Looking ahead, Clorox appears poised for a potential turnaround in December, supported by a generally positive analyst consensus and a valuation that aligns closely with its market value. With an overall buy rating and a possible upside target of around
111.11, investors might find value in considering a position, especially given the company's recent efforts to stabilize and innovate. While some analysts remain cautious with a few Sells and Strong Sells, the majority see room for growth, with the highest estimated target reaching as high as
144.17. If Clorox can capitalize on these projections and meet or exceed expectations, it could be a compelling opportunity to watch as the year closes..
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of The Clorox. Please refer to our
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