Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Continuous multi-factor scoring & catalyst forensics
Today's biggest gainers and losers
Clorox is a $14.8B consumer products manufacturer operating primarily in North America, with leading market positions in bleach (Clorox brand ~60% US market share), trash bags (Glad), cat litter (Fresh Step), and food products (Hidden Valley dressings, Kingsford charcoal). The company competes on brand strength and distribution scale in mature categories with limited organic growth, facing intense private label competition and commodity input cost volatility. Recent recovery in profitability (net margin rebounding to 11.4% from pandemic-era disruptions) reflects pricing actions and supply chain normalization.
Clorox generates returns through brand premiums in commoditized categories, leveraging 100+ years of consumer trust in cleaning/disinfection efficacy. Pricing power stems from category leadership (often #1 or #2 positions) and retailer dependence on high-velocity SKUs. The company operates asset-light manufacturing with significant outsourcing, focusing capital on marketing (typically 10-11% of sales) and innovation. Gross margins of 45% reflect formulation expertise and supply chain efficiency, though vulnerable to resin, oil-derived chemical, and packaging cost inflation. Distribution through mass retailers (Walmart, Target, Costco) and grocery chains provides volume scale but limits direct consumer relationships.
Gross margin trajectory driven by commodity input costs (polyethylene resin for Glad bags, crude-derived surfactants, chlor-alkali pricing) versus pricing realization timing
Volume trends in core cleaning/disinfecting categories, particularly post-pandemic normalization from elevated 2020-2021 demand levels
Market share defense against private label penetration in trash bags (Glad facing 40%+ private label share) and bleach categories
International expansion progress, particularly Latin America growth rates and profitability improvement
M&A activity and portfolio optimization, including potential divestitures of lower-margin businesses
Secular private label penetration in commoditized categories, with store brands capturing 25-45% share in trash bags, bleach, and cat litter through 30-40% price discounts and improving quality perception
E-commerce channel shift reducing shelf visibility advantages and enabling direct-to-consumer competition (e.g., Grove Collaborative, Blueland concentrated cleaners), though Clorox maintains strong Amazon presence
Sustainability pressures requiring reformulation away from chlorine bleach and single-use plastics, potentially undermining core product efficacy perceptions and requiring significant R&D investment
Procter & Gamble's scale advantages in cleaning (Tide, Dawn, Mr. Clean) enabling greater R&D and marketing investment, plus bundled retailer negotiations
Unilever and Henkel competition in personal care (Burt's Bees facing Dove, Neutrogena) with larger international distribution networks
Niche disruptors in natural/eco-friendly segments (Seventh Generation, Method) capturing millennial/Gen-Z preferences, though Clorox acquired some brands to hedge
Negative shareholder equity of $17.7B (Price/Book of -119.6x) due to aggressive share repurchases and debt-financed acquisitions, creating financial inflexibility for transformative M&A
Current ratio of 0.74 indicates working capital constraints, requiring consistent operating cash flow generation to meet short-term obligations and maintain $1B+ annual dividend ($650M+ commitment)
Debt/EBITDA estimated at 3.0-3.5x, manageable but limiting during commodity cost spikes or volume declines, with refinancing risk on 2027-2028 maturities if rates remain elevated
low - Household cleaning, trash bags, and food products exhibit non-discretionary demand characteristics with minimal GDP correlation. However, premium product mix can compress during recessions as consumers trade down to private label (Glad premium bags to store brands, Burt's Bees to mass cosmetics). Charcoal and outdoor lifestyle products show modest seasonality and discretionary exposure (~15% of portfolio). Historical evidence shows revenue declining only 2-4% during severe recessions while maintaining positive operating margins.
Moderate impact through two channels: (1) Financing costs on $3.8B net debt position (negative equity reflects treasury stock accounting), with ~$150-200M annual interest expense sensitive to refinancing rates on 2027-2029 maturities. (2) Valuation multiple compression as rising risk-free rates reduce present value of stable cash flows, particularly impacting dividend yield attractiveness (current ~3.5% yield). Consumer demand largely rate-insensitive given non-discretionary product mix.
Minimal direct exposure. Clorox sells primarily to investment-grade retailers with limited receivables risk. However, tighter credit conditions can pressure retailer inventory management, reducing order sizes and promotional support. Private label competition intensifies during credit crunches as consumers prioritize value.
value/dividend - Attracts income-focused investors seeking 3.5%+ dividend yield with 45-year consecutive increase history (Dividend Aristocrat status). Recent 191% EPS growth from depressed 2024 base and 5.2% FCF yield appeal to value investors betting on margin recovery to historical 18-20% operating margins. However, -17% one-year return reflects growth investor exodus due to 0.2% revenue growth and mature category exposure. Defensive characteristics attract risk-averse capital during market volatility.
low-to-moderate - Beta typically 0.6-0.8 reflecting consumer staples defensive characteristics, though recent volatility elevated due to commodity cost swings and pandemic demand normalization. Stock exhibits lower drawdowns than S&P 500 during recessions but lags in bull markets. Quarterly earnings volatility has increased post-2020 due to supply chain disruptions and input cost unpredictability.