Shares of The Clorox Co. fell to a 52-week low of $82.47, edging just pennies above an alternate 52-week low mark of $82.51, as weakness in the company’s earnings report weighed on investor sentiment.
Clorox reported fourth-quarter earnings per share of $1.66, missing both consensus estimates and UBS’s expectations. The miss came despite stronger-than-expected top-line revenue growth, which was largely offset by elevated advertising expenses.
The results have contributed to a steep decline in Clorox’s share price over the past year. The stock has posted a one-year total return of minus-28.6% and a one-year price change of minus-32.66%, with a nearly 17% decline over the past six months alone.
UBS, which covered the stock, raised its price target to $105 from $100 while maintaining a Neutral rating. The bank reiterated the Neutral rating and kept the $105 target following a meeting with members of Clorox’s management team, according to InvestingPro data. UBS also flagged Clorox among the most crowded consumer-staples positions among fund managers in July, alongside holdings in companies such as SJM and Procter & Gamble.
In the broader consumer staples sector, Goldman Sachs reported that U.S. store sales rose 1% over a four-week period in August, with household-care categories posting modest growth. Morgan Stanley noted slight increases in pet-food and cat-litter sales, reflecting varied performance across staples companies.
Despite the stock’s recent decline, InvestingPro analysis suggested Clorox remains undervalued at current levels. The company also continues to support its dividend, having raised its payout for 49 consecutive years and carrying a yield of nearly 6%.
