Could New and Improved Products Mean Renewed Success for Clorox Stock?
(NYSE: CLX) was a Wall Street darling early in the coronavirus pandemic when consumers were bolstering their cleaning routines. As demand for cleaning products cooled, so did investor enthusiasm around Clorox, with a steep drop in profitability making the situation even worse.
And yet, the core dynamics of the business haven't changed at all, with management continuing to focus on some of the most important words in the consumer staples business: new and improved. Here's what Clorox is doing -- and how it should be good for investors.
Clorox's business got caught up in the pandemic because it has a lot of cleaning products, headlined by its namesake brand. The company didn't sit idle during this unusual period. It inked deals with contract manufacturers so it could ramp up supply to meet the demand it was seeing in the market. Contract manufacturers are costly, but it was a quick fix that allowed Clorox an easy way to reduce supply when demand finally ebbed. It has since exited these manufacturing deals.
Source Fool.com
Clorox Co. Stock
Currently there is a rather negative sentiment for Clorox Co. with 3 Buy predictions and 10 Sell predictions..
On the other hand, the target price of 125 € is above the current price of 120.2 € for Clorox Co., so the potential is actually 3.99%.
