Stock Analysis | The Clorox Outlook - A Cautionary Stance Amid Weak Technicals and Mixed Analyst Opinions

1. Market Snapshot

Takeaway: The stock of The Clorox is currently on a downward trend (-3.83%), with weak technical signals suggesting it's best to avoid at this time. The internal diagnostic score for technical analysis is 1.4/10, signaling a bearish bias.

2. News Highlights

Recent news has largely overlooked The Clorox directly, but the broader financial landscape is shifting:

• Visa's APAC Expansion: Visa's new product rollouts in the Asia-Pacific region could indirectly impact broader consumer spending trends, possibly affecting Clorox's market environment.
• Amazon's Innovation Push: Amazon's new team for inventing consumer products might increase competition in household goods, potentially affecting Clorox's product strategy and market share.
• Meta's Defense Tech Partnership: While not directly related, Meta's venture into military products highlights the increasing role of AI, which could eventually affect Clorox's supply chain or logistics in the long term.

3. Analyst Views & Fundamentals

Analysts remain cautiously neutral, with 5 out of 6 recent ratings classified as "Neutral" and one as "Sell." The simple average rating is 2.83, while the performance-weighted rating is 3.72. These ratings are relatively consistent, but they contrast with the current downward price trend.

Key fundamental factors and their internal diagnostic scores (0-10) include:

• Operating Cycle: 92.00 days (internal score 1.00/10)
• Net Cash Flow from Operating Activities (YoY): 131.79% (internal score 1.00/10)
• Cost of Sales Ratio: 55.19% (internal score 3.00/10)
• Equity Multiplier: 5.20x (internal score 4.00/10)
• Cash-UP: -0.24 (internal score 4.00/10)
• Inventory Turnover Days: 58.12 days (internal score 1.00/10)

While some fundamentals like the equity multiplier and cost of sales ratio show moderate strength, the overall picture is mixed, with weak liquidity and operational efficiency signals.

4. Money-Flow Trends

Big money and retail investors are both showing a negative trend in recent flows. The overall inflow ratio is 0.496, meaning the stock is losing net attention. Specifically:

• Large and Extra-large investors are also showing negative trends.
• Retail (small) investors are contributing the least to inflow with a ratio of 0.495.

This pattern suggests a lack of conviction from both institutional and retail investors, reinforcing the current bearish bias.

5. Key Technical Signals

Three critical indicators have been flashing bearish signals recently:

• Williams %R Oversold is neutral in bias, with an internal diagnostic score of 2.2/10, suggesting limited upside potential.
• Ex-Dividend Date and Dividend Record Date both carry a bearish bias, with scores of 1.0/10 and 1.0/10, respectively. These events historically correlate with price declines.

On August 13, 2025, both the Ex-Dividend and Dividend Record dates overlapped, amplifying the bearish signal. Over the past five days, Williams %R Oversold has appeared five times, indicating a weak and overbought condition.

Key insights suggest 3 bearish signals to 0 bullish, reinforcing a weak trend and a recommendation to avoid the stock.

6. Conclusion

With weak technicals, bearish dividend-related signals, and mixed analyst ratings, The Clorox appears to be in a vulnerable position. Investors are advised to consider waiting for a pull-back or improved technical and fundamental signals before considering an entry.