The Clorox Company (CLX) Up 7.6% — Is Now the Right Time to Deploy Cash?
The Clorox Company (CLX) is rallying hard on Wednesday, last changing hands at $100.91 on the NYSE. That is a $7.11 gain from the prior close of $93.80 and puts the stock back above the $100 mark. Even after the jump, CLX sits roughly 21.7% below its 52-week high of $128.90, reached on February 26, 2026. That gap leaves meaningful room for recovery if the turnaround narrative keeps building.
Roughly 1.62 million shares have traded so far against a 90-day average of about 2.77 million, with the regular session still open. The stock has covered close to 60% of a typical day's turnover while posting one of the strongest gains in its group.
Why The Clorox Company Price is Moving Higher
Clorox is riding a powerful rally across Consumer Staples sector. The sector was up 3.16% and the household and personal products group was up 3.72% as of 11:02 a.m. ET. Peers are moving sharply higher alongside it, with Kimberly-Clark Corporation (KMB) up 5.83% and The Procter & Gamble Company (PG) up 3.68%. CLX is roughly doubling the sector's advance, though, and that outperformance traces directly to the fiscal Q1 2027 report Clorox delivered on November 2.
The headline numbers were emphatic. Adjusted EPS came in at $1.55 against a $1.07 consensus, a beat of nearly 45%. Sales reached $1.91 billion versus the $1.88 billion expected. Revenue climbed 33% year over year from $1.429 billion, and adjusted EPS jumped 82% from $0.85. Part of that top-line surge reflects benefits from the GOJO acquisition and a comparison against last year's ERP-related inventory drawdown. Still, a beat of this size on the bottom line gives investors a concrete reason to revisit a stock that had drifted well off its highs.
The report was not flawless. Gross margin slipped 130 basis points to 40.4% from 41.7%. Management also signaled that fiscal 2027 adjusted EPS would likely land near the low end of its unchanged $5.70 to $6.00 range, with full-year gross margin guided to about 41.5%. The analyst community nonetheless moved in Clorox's favor. Evercore upgraded CLX from Underperform to In Line on November 2, setting a $99 target and citing incoming CEO Fabian Garcia's turnaround experience. UBS followed on November 3 by lifting its target from $91 to $96 while maintaining Neutral. With the stock now trading above both targets, the market is pricing in more upside from the earnings momentum and leadership transition than the Street has formally endorsed.
What is the The Clorox Company Rating - Should I Buy?
Weiss Ratings assigns CLX a C- rating. Current recommendation is Hold. The rating captures a company with genuine operating strengths that have not yet translated into shareholder results. This week's earnings beat is exactly the kind of evidence that could begin to close that gap.
The standout is the Excellent rating on the Efficiency Index. It is supported by a 534.36% ROE, a figure that reflects how much earnings power Clorox extracts from an equity base that years of capital returns have pared down to a sliver. A 9.40% profit margin is respectable for a manufacturer absorbing commodity and logistics costs across bleach, trash bags, and charcoal. The 82% jump in adjusted EPS this quarter shows that profitability can expand quickly when volumes normalize. The Dividend Index is rated Fair, and the 5.31% yield gives income-focused holders a substantial cash return while the turnaround plays out.
Where the picture becomes more nuanced is in the remaining dimensions. The Growth Index is rated Fair despite 33.31% revenue growth. That headline rate is flattered by the GOJO acquisition and an easy comparison against last year's ERP disruption, which helps explain why the rating is not higher. The same thin equity base that magnifies ROE lies behind the Weak rating on the Solvency Index, since the balance sheet carries limited cushion relative to its obligations. The Total Return Index is also rated Weak, consistent with a stock still more than 21% below its February peak. Today's 7.58% swing on the earnings beat and sector rally illustrates why the Volatility Index is rated Weak as well. In this case, though, the volatility is working in shareholders' favor.
Within the Consumer Staples sector, Clorox trails Colgate-Palmolive Company (CL, C+) and Church & Dwight Co., Inc. (CHD, C+), both of which carry stronger risk/reward profiles in Weiss's framework. It also sits a notch below The Procter & Gamble Company (PG, C) and The Estée Lauder Companies Inc. (EL, C). That ranking is precisely what makes the current setup interesting. A forward P/E of 16.87 and a sizable yield give investors a lower entry point than its higher-rated peers if execution under new leadership continues to improve.
About The Clorox Company
The Clorox Company (CLX) is a Consumer Staples company headquartered in Oakland, California and founded in 1913. Its portfolio is built around brands that hold leading or near-leading positions in their categories. The namesake Clorox bleach and disinfecting wipes anchor its cleaning business, alongside Pine-Sol, Liquid-Plumr, and Formula 409. Glad trash bags and food storage products, Kingsford charcoal, Fresh Step and Scoop Away cat litter, Hidden Valley dressings and sauces, Brita water filtration, and Burt's Bees personal care round out a lineup that reaches well beyond the laundry room. The GOJO acquisition, which brought in the maker of Purell hand sanitizer, deepens the company's presence in hygiene and away-from-home cleaning.
Clorox sells primarily through mass merchandisers, grocery chains, club stores, dollar stores, and e-commerce channels in the United States. It also operates internationally across a range of markets. Much of the business is organized around everyday household needs, which gives demand a recurring, replenishment-driven quality that holds up across economic cycles.
The company's competitive advantages rest on brand equity built over decades, strong shelf positioning with major retailers, and a portfolio deliberately concentrated in categories where it can hold the number one or number two spot. That category leadership supports pricing power and gives Clorox leverage in retailer negotiations. Its ongoing investments in digital capabilities and supply chain modernization are aimed at improving cost efficiency and restoring the gross margins that historically set it apart within the household products space.
Investor Outlook
The Clorox Company (CLX) carries a Weiss Rating of C- (Hold). This week's decisive earnings beat, combined with a 5.31% yield and a new CEO with turnaround credentials, gives investors a compelling reason to watch closely. The key markers ahead are whether gross margin recovers toward the roughly 41.5% full-year target and whether fiscal 2027 adjusted EPS can push above the low end of the $5.70 to $6.00 range as Fabian Garcia takes the helm. See full rankings of all C- rated Consumer Staples stocks inside the Weiss Stock Screener.
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