The Clorox Outlook - Navigating Technical Neutrality and Mixed Analyst Signals

1. Market Snapshot

Takeaway: Clorox (CLX) remains in technical neutrality, with no clear trend emerging in the last five days. Investors are advised to take a wait-and-see approach as the market remains in a volatile and indecisive state.

2. News Highlights

While most recent headlines have focused on unrelated household service providers, a few developments stand out:

• E-Home Household Service (EJH) announced a share consolidation plan on May 1, 2025, aimed at improving its capital structure. This reflects a broader trend in the household services sector, though it doesn't directly impact Clorox.
• Indian beauty retailer Nykaa reported a surge in profits in the fourth quarter, driven by strong demand for premium beauty products. While unrelated to Clorox, it signals growing consumer spending on household and personal care goods in emerging markets.
• ETFGI reported that assets in the ETF industry in Asia Pacific (excluding Japan) reached a new record of $1.25 trillion in April. This suggests increased investor activity in the region, which may indirectly benefit global household goods companies like Clorox.

3. Analyst Views & Fundamentals

Analysts remain cautious, with a simple average rating of 3.00 and a performance-weighted average of 5.52, indicating a mix of optimism and caution. The recent ratings are mostly neutral (2 out of 2), and the consensus aligns with the recent upward price trend of 6.81%.

Key Fundamental Factors

• Net profit attributable to parent company shareholders / Net profit (%): 98.32% (internal diagnostic score: 9.22)
• Operating cycle: 92.00 days (internal diagnostic score: 9.22)
• Price to Sales (PS) ratio: 9.17 (internal diagnostic score: 9.17)
• Quick ratio: 0.60 (internal diagnostic score: 8.97)
• Net cash flow from operating activities (YoY growth rate %): 131.79% (internal diagnostic score: 9.34)
• ROE (Return on Equity): 1.60% (internal diagnostic score: 8.35)
• Cash-UP: -0.24 (internal diagnostic score: 9.39)
• Cost of sales ratio (%): 55.19% (internal diagnostic score: 9.00)
• Inventory turnover days: 58.12 days (internal diagnostic score: 9.21)
• Current ratio: 0.94 (internal diagnostic score: 8.97)

4. Money-Flow Trends

Big money is showing mixed signals. The fund-flow score of 7.88 (a good score) indicates some positive inflows, though the overall trend remains negative at the block, small, and medium levels. Specifically:

• Small inflow ratio: 49.24%
• Medium inflow ratio: 49.89%
• Large inflow ratio: 48.29%
• Extra-large inflow ratio: 49.77%

While inflows are nearly balanced across different investor sizes, the overall inflow ratio of 49.16% suggests a slight bearish bias in aggregate money movement.

5. Key Technical Signals

Clorox is currently in a state of technical neutrality with a technical score of 5.57, meaning there’s no clear bullish or bearish bias in the last five days.

Recent Indicator Performance

• WR Overbought: Internal diagnostic score: 2.14 (neutral rise)
• RSI Overbought: Internal diagnostic score: 7.44 (neutral rise)
• MACD Golden Cross: Internal diagnostic score: 5.90 (neutral rise)
• Dividend Payable Date: Internal diagnostic score: 7.77 (bullish bias)
• Marubozu White: Internal diagnostic score: 4.59 (neutral rise)

Recent Chart Patterns

• On 2025-09-03: WR Overbought and MACD Golden Cross signals appeared.
• On 2025-09-05: WR Overbought, RSI Overbought, and Marubozu White signals.
• On 2025-08-29: Dividend Payable Date signal.
• On 2025-09-08: WR Overbought signal again.

These mixed signals reflect an indecisive market, where both bullish and bearish patterns are emerging with little clarity on the next directional move.

6. Conclusion

Clorox remains in a wait-and-see phase, supported by strong fundamentals and a relatively positive fund-flow backdrop. However, the lack of a clear technical bias means that investors should stay cautious and avoid aggressive moves. Consider waiting for a clearer breakout signal—whether bullish or bearish—before committing to a position. For now, the market seems to prefer patience over action.