TLDR
- Clorox shares plummeted to a 52-week low of $88.38 after initially touching $91.00, marking a 27.25% decline year-over-year
- Third-quarter fiscal 2026 earnings per share reached $1.64, surpassing expectations by $0.10, though sales outlook deteriorated
- The company anticipates approximately 6% decline in net sales for the full fiscal year 2026
- Major Wall Street firms including Goldman Sachs, UBS, Morgan Stanley, and Evercore ISI reduced their price targets
- Analysts express reserved sentiment despite quarterly earnings outperformance
Shares of Clorox (CLX) plunged to a fresh 52-week low of $91.00 on May 1, subsequently dropping further to $88.38. The stock has shed 27.25% of its value over the trailing twelve months.
The decline followed Clorox’s third-quarter fiscal 2026 earnings report released on April 30, which included a downward revision to its annual projections.
At first glance, the quarterly results appeared solid. The company posted non-GAAP earnings per share of $1.64, exceeding Wall Street’s consensus estimate of $1.55 by ten cents. Revenue registered at $1.67 billion, matching analyst predictions.
However, the forward-looking guidance painted a more challenging picture. Management now anticipates a net sales contraction of approximately 6% for the full fiscal year 2026. This represents a significant downgrade from earlier projections.
The company also lowered its adjusted EPS forecast for the fiscal year to a range of $5.45 to $5.65, down from the previously communicated range of $5.95 to $6.30.
Shares retreated roughly 2% in the immediate aftermath of the earnings announcement.
Wall Street Cuts Price Targets
The diminished outlook prompted a cascade of price target reductions across Wall Street.
Goldman Sachs lowered its price objective to $83 from $94, explicitly attributing the adjustment to the weakened guidance.
UBS reduced its target to $96 from $110 while maintaining its Neutral stance. Morgan Stanley similarly decreased its target to $97 from $110, highlighting headwinds in specific product segments.
Evercore ISI brought down its price target to $110 from $115, noting that the third-quarter performance benefited from the cessation of Glad’s royalty obligations — a non-recurring advantage that won’t provide future support.
Mixed Picture on Fundamentals
Clorox currently trades at a price-to-earnings multiple of 15.76x, which certain analysts consider reasonable relative to its earnings power. According to InvestingPro analysis, the stock appears undervalued at present price levels.
The company receives a GF Score of 68 out of 100. While profitability earns a solid 7/10 rating, growth performance scores only 1/10 — a troubling indicator within the competitive consumer packaged goods sector.
Financial strength stands at 4/10, suggesting potential vulnerabilities regarding leverage and liquidity management.
Management indicated that the GOJO acquisition should help mitigate some revenue pressure, though the overall sentiment remains guarded.
Insider transactions during the past year have been minimal — two purchases and one sale, with the divestiture totaling approximately $1.86 million.
The company’s market capitalization currently stands at roughly $11.66 billion, representing a substantial erosion from levels seen twelve months ago.
The recent 52-week low of $88.38 marks the latest milestone in a stock that has faced persistent downward pressure throughout this fiscal period.
