Clorox (CLX): Is the 38% Year-To-Date Slide Signaling an Undervalued Opportunity?

Clorox (CLX) has quietly slid this year, with the stock down roughly 38% year to date and about 20% over the past 3 months, prompting investors to revisit its valuation.

See our latest analysis for Clorox.

That slide reflects more than just a bad week, with the latest share price of $99.82 and a steep year to date share price return signalling that momentum has clearly faded despite modest underlying revenue and net income growth.

If Clorox’s pullback has you rethinking your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership as potential fresh ideas with stronger momentum.

With shares now trading well below analyst targets despite steady, if unspectacular, growth, the key question is whether Clorox is quietly undervalued or whether the market is already pricing in all the recovery ahead.

Most Popular Narrative Narrative: 19.9% Undervalued

With Clorox last closing at $99.82 versus a most popular narrative fair value near $124.59, the storyline leans toward a meaningful disconnect in expectations.

The full scale implementation of a modern ERP system is expected to drive long term operational efficiencies, improving supply chain visibility, speeding innovation cycles, and reducing structural costs, which should support margin expansion and sustained earnings growth once short term transition noise normalizes.

Read the complete narrative.

Curious how modest revenue growth, firmer margins, and a rich future earnings multiple can still justify upside from here? The narrative’s math may surprise you.

Result: Fair Value of $124.59 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering category softness and intense price competition in core brands could compress margins and stall the margin recovery that supports the upside case.

Find out about the key risks to this Clorox narrative.

Build Your Own Clorox Narrative

If this perspective does not quite fit your view, or you prefer digging into the numbers yourself, you can build a custom narrative in minutes: Do it your way

A great starting point for your Clorox research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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