Stock Analysis | The Clorox Outlook - Bearish Momentum and Mixed Analyst Sentiment

Market Snapshot: A Weak Technical Picture

Headline Takeaway: The Clorox stock is currently underperforming with a weak technical outlook and bearish signals dominating. Our internal diagnostic score (0-10) for technical analysis stands at 1.4, suggesting investors should exercise caution.

News Highlights: Global Developments with Mixed Relevance

• U.S. Visa Policy Update (May 28): U.S. Secretary of State Marco Rubio announced the revocation of visas for Chinese students with ties to the Chinese Communist Party or those studying in critical fields. While not directly related to The Clorox, the geopolitical tension could impact consumer confidence and international trade flows.
• APAC ETF Growth (May 31): Assets in ETFs across Asia Pacific (excluding Japan) hit a record $1.25 trillion. This could be a positive backdrop for global markets, including The Clorox, but doesn't directly drive short-term stock performance.
• Amazon’s New Innovation Team (May 30): Amazon has launched a new team to create novel consumer products, potentially increasing competition in household goods. The Clorox may face indirect pressure from such developments in the long run.

Analyst Views & Fundamentals: Mixed Sentiment with Strong Fundamentals

Average Rating Score (simple mean): 2.83

Weighted Rating Score (performance-weighted): 3.72

Rating Consistency: Analysts are not aligned, with a recent spread of five "Neutral" and one "Sell" ratings.

Key Fundamental Values and Model Scores

• Revenue-MV: value: 0.15, internal diagnostic score: 1
• Net Cash Flow from Operating Activities / Operating Revenue (%): value: 11.63%, internal diagnostic score: 1
• Profit-MV: value: -0.12, internal diagnostic score: 2
• Operating Cycle: value: 92.00, internal diagnostic score: 2
• CFOA: value: 0.03, internal diagnostic score: 2
• Interest Coverage Ratio (EBIT / Interest Expense) (%): value: 10.63%, internal diagnostic score: 2

While the fundamentals are relatively strong, the bearish technical setup and mixed analyst views suggest that the current price trend (-4.03% in recent days) is not well-supported by market sentiment.

Money-Flow Trends: Negative Outflows Across the Board

Big-money and retail investors are both showing negative trends:

• Extra-large inflow ratio: 0.51
• Large inflow ratio: 0.48
• Medium inflow ratio: 0.49
• Small inflow ratio: 0.49

Overall, the fund flow score (0-10) for The Clorox is 7.82, categorized as "good," but the overall trend remains negative. This suggests while institutional flows are slightly positive, retail and mid-cap investor activity is pulling the stock lower.

Key Technical Signals: Oversold and Dividend Dates Weigh on Momentum

• WR Oversold: internal diagnostic score: 2.2, neutral bias
• Ex-Dividend Date: internal diagnostic score: 1.0, biased bearish
• Dividend Record Date: internal diagnostic score: 1.0, biased bearish

On August 13, 2025, both the Ex-Dividend and Dividend Record Dates appeared together, signaling potential selling pressure. These events, combined with the WR Oversold indicator over the past five days (triggered on 8/11, 8/14, and 8/18), suggest a weak trend.

The technical score remains 1.4, and key insights highlight the dominance of bearish signals (3 vs 0 bullish) and the high risk of further decline.

Conclusion: A Cautious Outlook for Investors

With a weak technical setup, mixed analyst ratings, and bearish market sentiment, The Clorox presents a challenging outlook for near-term investors. While the fundamentals remain strong with several positive indicators like operating cycle and EBIT coverage, the current price trend and technical conditions are not in investors' favor.

Actionable Takeaway: Consider waiting for a pull-back or use these bearish signals as a warning to avoid initiating new positions without a clear reversal in the technical indicators.