Stock Analysis | The Clorox Outlook - Mixed Signals as Technical and Fundamentals Pull in Different Directions

Market Snapshot

Takeaway: Clorox (CLX) is showing mixed signals, with a recent price drop of 1.07% and weak technical analysis scores, despite relatively strong fundamental ratings.

News Highlights

Recent news has largely missed Clorox directly, but a few key items may influence the broader market environment:

• U.S. Visa Policy Shift: The U.S. announced a new visa policy impacting Chinese students, potentially causing ripples in global trade and consumer sentiment. This may indirectly affect Clorox’s international exposure.
• APAC ETF Growth: Assets in the ETF industry across the Asia-Pacific (excluding Japan) hit a record $1.25 trillion. While Clorox is not an ETF, strong investor appetite for regional assets could support overall market sentiment.
• Amazon’s New Product Innovation: Amazon’s new ZeroOne team is developing cutting-edge consumer products. This underlines a broader industry shift toward innovation, which Clorox may need to keep pace with in its own product lines.

Analyst Views & Fundamentals

Clorox received mixed analyst ratings recently, with five "Neutral" and one "Sell" recommendation:

• Average Rating Score: 2.83 (simple mean)
• Weighted Rating Score: 3.76 (performance-weighted)
• Rating Consistency: The ratings are somewhat inconsistent, with "Neutral" and "Sell" calls showing dispersion.
• Price Trend Mismatch: The current price is down, while the weighted analyst expectations are relatively neutral. This mismatch could signal caution for investors.

Key Fundamental Factors:

• Net profit attributable to parent company shareholders / Net profit (%): 98.32% – scored 10.00 (internal diagnostic score)
• Operating cycle: 92.00 days – scored 2.00
• Price-to-Sales (PS) ratio: 9.17 – scored 3.00
• Quick ratio: 0.60 – scored 0.00
• Net cash flow from operating activities (YoY growth rate %): 131.79% – scored 1.00
• Cash-UP: -0.24 – scored 1.00
• Cost of sales ratio (%): 55.19% – scored 2.00
• Inventory turnover days: 58.12 days – scored 1.00

Clorox's fundamentals show strong net profit margins but weaker liquidity and cash flow indicators, which may be a cause for concern in the near term.

Money-Flow Trends

Big money is currently moving out of Clorox. The fund-flow score is 7.79 (good), but the overall trend across all investor segments is negative:

• Small investors: 48.10% inflow ratio, negative trend
• Medium investors: 48.42% inflow ratio, negative trend
• Large investors: 47.52% inflow ratio, negative trend
• Extra-large investors: 49.60% inflow ratio, negative trend

With all investor sizes showing a negative trend, the market sentiment for Clorox remains bearish. Retail and institutional investors are both pulling back.

Key Technical Signals

Clorox’s technical outlook is weak, with an internal diagnostic score of 3.83. Here’s a breakdown of the key signals:

• WR Oversold: Scored 2.11 (internal diagnostic score). This pattern has historically shown a 43.84% win rate and a 7.00% average return, but it currently has a neutral bias.
• Bearish Engulfing: Scored 2.52 (internal diagnostic score). This bearish candlestick pattern has a 42.86% win rate and a -36.00% average return.
• Dividend Payable Date: Scored 6.85 (internal diagnostic score). This has historically shown a 66.67% win rate and a 50.00% average return, indicating a potential short-term boost.

Recent chart patterns (August 22–29, 2025):

• August 22: WR Oversold
• August 26: WR Oversold
• August 25: WR Oversold
• August 28: Bearish Engulfing
• August 29: Dividend Payable Date

These signals suggest a lack of strong momentum, with bearish indicators dominating. The key insights indicate a volatile and uncertain market, where traders are hesitant to take positions.

Conclusion

Clorox is in a tricky position: fundamentals suggest decent profitability, but technical indicators and market sentiment are bearish. The recent bearish engulfing and WR oversold signals, along with weak inflow data, suggest caution. Investors may want to consider waiting for a pull-back or a clearer signal before entering or adding to positions. Keep an eye on upcoming earnings and macroeconomic developments for further clarity.