Cost Reset and Health Focus Might Change The Case For Investing In Clorox (CLX)

• In recent months, Clorox has been rebuilding efficiency and normalizing costs after earlier disruptions, while analysts have generally taken a more cautious stance ahead of its upcoming fiscal Q2 2026 earnings release.
• At the same time, investor interest in defensive consumer staples and Clorox’s emphasis on health, wellness, and professional cleaning solutions have supported a healthier gross margin profile and renewed attention to its longer-term earnings stability.
• Now we’ll examine how Clorox’s recent cost normalization and focus on health-oriented cleaning products could influence its existing investment narrative.

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Clorox Investment Narrative Recap

To own Clorox today, you need to believe that a mature, branded consumer staples business can keep defending margins while stabilizing demand across slower categories. The recent analyst downgrades and cautious tone around fiscal Q2 2026 do not materially change the near term catalyst, which still centers on whether cost normalization and efficiency gains can hold up against lingering demand uncertainty and competitive discounting.

The most relevant recent development is analysts’ expectation for an adjusted EPS decline in the upcoming Q2 2026 report, following Q1 earnings that beat estimates despite softer revenue. This sets a clear, near term test of Clorox’s cost and margin rebuilding story, and how resilient its health, wellness and cleaning focus really is when category growth and pricing pressure remain key concerns.

Yet investors should be aware that intense price competition and heavier discounting in categories like Glad and Cat Litter could still...

Read the full narrative on Clorox (it's free!)

Clorox's narrative projects $7.0 billion revenue and $881.8 million earnings by 2028. This requires a 0.4% yearly revenue decline and about a $71.8 million earnings increase from $810.0 million today.

Uncover how Clorox's forecasts yield a $122.41 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly US$91 to US$214 per share, showing how far apart individual views can be. Against that backdrop, ongoing category growth uncertainty and competitive discounting give you good reason to compare several of these perspectives before deciding how Clorox might fit into your portfolio.

Explore 7 other fair value estimates on Clorox - why the stock might be worth over 2x more than the current price!

Build Your Own Clorox Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Clorox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clorox's overall financial health at a glance.

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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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