Clorox Leverages Digital and Operational Optimization to Aid Growth

The Clorox Company CLX is strengthening its business through a range of initiatives, including operational improvements, innovation and portfolio expansion amid a challenging consumer environment. Its international expansion is emerging as a critical lever for its long-term success. The company aims to unlock greater potential in its International segment by building on the success of its Go Lean strategy, emphasizing product innovation and operational efficiency across key global markets.

A major priority for the company is completing its digital transformation. It has reached a key milestone in its transformation journey with the successful launch of its new enterprise resource planning (ERP) system in the US. The move has bolstered its digital backbone and opened new value streams. The company is focused on resilience and adaptability, navigating effectively with the benefits of ramping up the operations.

Innovation remains a cornerstone of the company’s growth strategy, driving near-term performance and long-term value creation. CLX continues to invest in a robust pipeline of product launches, with a particular focus in the second half of the year. Such innovations aim to deliver superior consumer value through differentiated offerings, enabling Clorox to strengthen market share, expand into adjacent categories and build scalable platforms.

Clorox is expanding its presence in the health and hygiene space through the pending acquisition of GOJO Industries. This move strengthens its position in a category with strong long-term demand and complements its existing Health and Wellness business. The company is taking a disciplined approach to integration, ensuring that core operations remain focused while capturing growth opportunities from the new business. During the second quarter of fiscal 2026, sales at the Health and Wellness segment grew 2% year over year, reflecting a two-point increase in volumes.

The company’s ongoing holistic margin-management efforts, focused on driving efficiencies in manufacturing and logistics, also appear encouraging. Based on the aforesaid factors and a disciplined approach, CLX can position itself as a global consumer staples contender. Hence, the company concentrates on offering superior value to consumers by investing in its brands and making innovations.

CLX’s Price Performance, Valuation & Estimates

Shares of Clorox have gained 3.9% in the past three months compared with the industry’s drop of 1.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 15.66X compared with the industry’s average of 17.59X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CLX’s fiscal 2026 earnings implies a year-over-year decline of 23.5%, while that of fiscal 2027 shows growth of 15.3%. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.

Image Source: Zacks Investment Research

Clorox stock currently carries a Zacks Rank #3 (Hold).

Stocks to Consider in the Consumer Staples Space

Freshpet, Inc. FRPT, which is a pet food company, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 8.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 50%, on average.

Keurig Dr Pepper Inc. KDP is a prominent integrated brand owner, manufacturer and distributor of beverages across the United States, Canada, Mexico and the Caribbean. The company currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for KDP’s 2026 EPS indicates growth of 10.7% from the previous year’s reported figure. Keurig Dr Pepper delivered a trailing four-quarter average earnings surprise of 3.1%.

Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED missed the average earnings surprise by a sharp margin in the trailing four quarters.

The Zacks Consensus Estimate for Medifast’s current financial-year earnings indicates growth of 30.5% from the year-ago number.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

See Top Quantum Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Clorox Company (CLX): Free Stock Analysis Report

Freshpet, Inc. (FRPT): Free Stock Analysis Report

MEDIFAST INC (MED): Free Stock Analysis Report

Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research