• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

Is Clorox stock a good buy ahead of its fiscal Q1 2022 results?

by October 30, 2021
by October 30, 2021

On Friday, Clorox Co. (NYSE:CLX) shares edged slightly higher as investors prepped for its upcoming quarterly results. The company will report its fiscal first-quarter 2022 results on the 1st of November after markets close. The market expects the company to miss analyst expectations amid declining sales and increasing costs.

Clorox shares spiked last year at the peak of the Covid-19 pandemic before plunging in the subsequent 12-month period. The stock is now down more than 21% over the past 52 weeks. This year alone, it has declined 18.67%, creating an exciting entry opportunity.

Is Clorox too risky to buy?

From an investment perspective, investors will be looking at the company’s rising costs against falling sales. And given the increasing number of Covid-19 remedies, sales could fall further in the next few quarters before stabilising. 

As a result, analysts expect its bottom line to worsen by more than 24% this year before recovering by 21.82% next year. 

Therefore, although the stock trades at reasonable valuation multiples of 29.45 P/E and 24.50 forward P/E, investors may not be fully persuaded to bet on the stock yet.

Source – TradingView

Technically, Clorox shares seem to be trading within a descending channel formation in the intraday chart. However, the stock has recently bounced back to rally towards the 100-day moving average. 

And with shares having more room left before retesting the trendline resistance, the current rebound could continue ahead of its Q1 results.

Nonetheless, given the current investor expectations, the stock could also fall sharply if it misses estimates. Therefore, investors could target upward profits at $168.38 and $172.90, while those looking to short the stock ahead of earnings could profit at $159.81 and $156.00.

A pullback could be imminent

In summary, although Clorox shares still have room left to run before reaching overbought conditions, the rally could be cut short ahead of Monday’s FQ1 results amid declining sales and rising costs.

Therefore, it could be too risky to bet on the bull run.

The post Is Clorox stock a good buy ahead of its fiscal Q1 2022 results? appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Should I invest in AbbVie shares as it guides FY2021 EPS above Street forecast?
next post
DAX index forecast ahead of factory orders report

Related Posts

IMF projects global growth at 2.9%; Disinflation to...

January 31, 2023

Chinese PMIs spark to life after covid restrictions...

January 31, 2023

Should you buy Apple shares ahead of its...

January 30, 2023

Mercedes-Benz just beat Elon Musk’s Tesla in its...

January 30, 2023

Amid recessionary fears, Texas manufacturing disappoints for the...

January 30, 2023

Goldman Sachs reveals one of the best-positioned retail...

January 30, 2023

Exploring the puzzling logic behind Canada’s central bank...

January 30, 2023

Are we in a ‘new bull market’ now?...

January 30, 2023

Gold at all-time highs in Euro and GBP...

January 30, 2023

SoFi stock is up 15% on Monday: here’s...

January 30, 2023

Recent Posts

  • IMF projects global growth at 2.9%; Disinflation to bring little comfort

    January 31, 2023
  • Chinese PMIs spark to life after covid restrictions lifted, but investors stay wary

    January 31, 2023
  • Should you buy Apple shares ahead of its Q1 earnings report?

    January 30, 2023
  • Mercedes-Benz just beat Elon Musk’s Tesla in its home ground

    January 30, 2023
  • Amid recessionary fears, Texas manufacturing disappoints for the ninth consecutive month

    January 30, 2023
  • Goldman Sachs reveals one of the best-positioned retail stocks

    January 30, 2023

Editors’ Picks

  • 1

    Nvidia Corporation earnings beat not sufficient to boost stock – Is it a good buy?

    February 18, 2022
  • 2

    2 Canadian marijuana stocks to keep a close eye on

    February 5, 2022
  • 3

    The IMF Should Be Eliminated, Not Expanded

    October 12, 2021
  • 4

    Micron Technology shares are trading lower after-hours: here’s why

    September 29, 2021
  • 5

    Headed for Insolvency: Biden Administration Increases US Obligations Worldwide

    May 29, 2022
  • 6

    Here’s what inflation might look like in 2022

    November 23, 2021
  • 7

    Is Clorox stock a good buy ahead of its fiscal Q1 2022 results?

    October 30, 2021
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economy (1,621)
  • Editor's Pick (575)
  • Investing (4,622)
  • Stock (10)
About Us Terms & Conditions Privacy Policy Email WhiteListing Contact Us

Disclaimer: Portfolioperformancetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick

Read alsox

Should you follow Jeff Bezos’ lead and...

November 8, 2021

4 Nasdaq 100 stocks that are defying...

June 13, 2022

SoftBank’s stock rises, bouncing back from a...

January 27, 2022