Clorox has gotten torched over the last six months - since February 2025, its stock price has dropped 24.6% to $117.96 per share. This may have investors wondering how to approach the situation.
Is there a buying opportunity in Clorox, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.
Why Is Clorox Not Exciting?
Even though the stock has become cheaper, we're swiping left on Clorox for now. Here are three reasons why CLX doesn't excite us and a stock we'd rather own.
1. Long-Term Revenue Growth Flatter Than a Pancake
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Clorox struggled to consistently increase demand as its $7.10 billion of sales for the trailing 12 months was close to its revenue three years ago. This wasn’t a great result and signals it’s a lower quality business.
2. Slow Organic Growth Suggests Waning Demand In Core Business
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Clorox’s products has generally risen over the last two years but lagged behind the broader sector. On average, the company’s organic sales have grown by 4.4% year on year. 
3. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Clorox’s revenue to drop by 8.2%, a decrease from This projection doesn't excite us and suggests its products will face some demand challenges.
Final Judgment
Clorox isn’t a terrible business, but it doesn’t pass our bar. Following the recent decline, the stock trades at 18.6× forward P/E (or $117.96 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're fairly confident there are better stocks to buy right now. We’d suggest looking at a safe-and-steady industrials business benefiting from an upgrade cycle.
Stocks We Would Buy Instead of Clorox
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