Oakland, California-based The Clorox Company (CLX) produces and sells consumer and professional products. Valued at $18.4 billion by market cap, the company offers cleaning and disinfecting products, cat litter, bags and wraps, grilling supplies, dressings and sauces, water filtration systems, personal care items, and vitamins under brands like Clorox, Brita, Burt’s Bees, Glad, Kingsford, and Hidden Valley.
Shares of this consumer products giant have underperformed the broader market over the past year. CLX has declined 3.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.5%. In 2025, CLX stock is down 8.5%, compared to SPX’s 2.9% rise on a YTD basis.
Narrowing the focus, CLX’s underperformance is also apparent compared to the Consumer Staples Select Sector SPDR Fund (XLP). The exchange-traded fund has gained about 9.4% over the past year. Moreover, the ETF’s 2.5% gains on a YTD basis outshine the stock’s losses over the same time frame.
Clorox's underperformance is driven by a misinterpreted post-pandemic demand, escalating inflation, and revenue declines, due to inventory normalization and its decision to divest operations in Argentina, Uruguay, and Paraguay as part of a strategic restructuring. Additionally, it has struggled with lower volumes caused by temporary distribution losses from a cyberattack, while unfavorable foreign exchange rates added further pressure.
On Feb. 3, CLX reported its Q2 results, and its shares closed down more than 7% in the following trading session. Its revenue was $1.7 billion, topping Wall Street forecasts of $1.6 billion. The company’s adjusted EPS of $1.55, surpassed Wall Street expectations of $1.39. CLX expects full-year adjusted EPS to be between $6.95 and $7.35.
For the current fiscal year, ending in June, analysts expect CLX’s EPS to grow 15.9% to $7.15 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering CLX stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, 15 “Holds,” and four “Strong Sells.”
This configuration is less bearish than two months ago, with five analysts suggesting a “Strong Sell.”
On Feb. 5, D.A. Davidson analyst Linda Bolton Weiser maintained a “Hold” rating on CLX with a price target of $169, implying a potential upside of 13.7% from current levels.
The mean price target of $161.78 represents an 8.8% premium to CLX’s current price levels. The Street-high price target of $189 suggests an ambitious upside potential of 27.1%.
