Stock Analysis | The Clorox Outlook - A Weak Technical Picture and Mixed Analyst Sentiment

Market Snapshot

Takeaway: The Clorox (CLX) faces a weak technical backdrop, with a falling price trend (-4.25%) and a low internal diagnostic score of 2.32, suggesting caution. Analysts remain divided, but the stock shows mixed signals in fundamentals and cash flow.

News Highlights

Recent news items, while not directly linked to The Clorox, highlight broader market shifts:

• U.S. visa policy changes affecting Chinese students could indirectly impact multinational corporations. While not specific to CLX, it reflects a tightening geopolitical climate.
• Resideo Technologies (REZI) is expected to grow due to new product launches and acquisitions, serving as a benchmark for consumer goods companies aiming to boost revenue.
• APAC ETF growth reached $1.25 trillion, indicating strong regional investor interest. This could influence overall market sentiment but may not directly affect a U.S.-based firm like Clorox.

Analyst Views & Fundamentals

Analysts remain divided on The Clorox, with a simple average rating of 2.83 and a performance-weighted score of 3.72. This indicates mixed expectations, with some positive signals but also caution:

• Ratings distribution: 5 "Neutral" and 1 "Sell" in the last 20 days, showing lack of consensus.
• Price trend mismatch: The stock is down 4.25% recently, while analyst expectations remain neutral-to-bearish.

Fundamental highlights include the following key metrics (with internal diagnostic scores in parentheses):

• Price-to-Sales (PS): 9.17 (3.00)
• Price-to-Earnings (PE): 79.72 (3.00)
• Net Profit Margin (NPM): 11.51% (0.00)
• Return on Assets (ROA): 3.48% (0.00)
• Quick Ratio: 0.60 (0.00)
• Operating Cycle: 92.00 days (2.00)
• Net Cash Flow from Operating Activities (YoY): 131.79% (1.00)
• Return on Equity (ROE): 1.60% (0.00)
• Cash-UP: -0.24% (2.00)
• Cost of Sales Ratio: 55.19% (0.00)

Money-Flow Trends

Big-money flows indicate a mixed picture, with block, large, and medium flows trending negatively, while extra-large flows are positive. Retail flows are also trending down:

• Overall inflow ratio: 49.64% – slightly below average.
• Block inflow ratio: 49.77% – indicating some institutional caution.
• Fund-flow score: 7.83 (internal diagnostic score), which is good and suggests moderate positive expectations despite broader selling pressure.

Key Technical Signals

Technical indicators for The Clorox show a weak signal profile, with 1 bearish and 0 bullish indicators over the last 5 days:

• Williams %R (WR) Oversold: Score of 2.32 (internal diagnostic score), signaling a weak but neutral short-term bias. Historical signals (71 total) show a 45.07% win rate and an average return of 1.20%, indicating limited upside potential.

Recent activity by date:

• 2025-08-25: WR Oversold
• 2025-08-22: WR Oversold
• 2025-08-21: WR Oversold
• 2025-08-18: WR Oversold

Summary: Recent technical signals are scarce and bearish, with no strong reversal patterns observed. The key insight is weak momentum and a high risk of further decline.

Conclusion

Given the weak technical signals and mixed analyst sentiment, investors may want to avoid new long positions in The Clorox for now. The stock is facing downward pressure with no clear reversal signs. However, the strong fund-flow score of 7.83 (internal diagnostic score) and decent fundamental cash flow suggest that the long-term outlook is not entirely negative. Watch for a potential pull-back or improved technical confirmation before re-entering the stock.