The technical chart pattern of The Clorox Company shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The company returns high margins, thereby supporting business profitability.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
Weaknesses
● The stock is close to a major daily resistance at USD 197.84, which should be gotten rid of so as to gain new appreciation potential.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● Below the resistance at 209.46 USD, the stock shows a negative configuration when looking looking at the weekly chart.
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The Clorox Company is a world leader in the production and sale of consumer products. Net sales by family of products break down as follows:
- home maintenance and laundry products (40.6%): dishwashing liquids, detergents, stain removers, bleaches, toilet bowl cleaners, etc. (Clorox®, Formula 409®, Liquid-Plumr®, Pine-Sol®, S.O.S®, Tilex®, Green Works®, CloroxProTM, Dispatch®, Clorox Healthcare®, Hidden Valley®, KC Masterpiece® brands, etc.). In addition, the group offers vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell and Rainbow Light brands ;
- household products (27%): charcoal (Kingsford and Match Light brands), cat litters (Fresh Step®, Scoop Away® and Ever Clean® brands) and plastic bags (Glad brand®);
- other (16.6%): condiments and sauces (Hidden Valley, KC Masterpiece and Soy Vay brands), water filters (Brita brand) and natural personal care products (Burt's Bees and Güd brands).
The remaining sales (15.8%) are from abroad activities.
The United States accounts for 84.2% of net sales.