Clorox Company (The) (CLX)

Clorox stock forecast: buy or sell

Clorox stock outlook

  • After hitting all-time highs yesterday, Clorox closed today at $230.52 rising a 2.12%
  • The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle, and International.
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Important note:
The opinions contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the individual positions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for educative reasons only

Clorox stock chart overview

Should I buy Clorox stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is CLX stock a buy?

Currently, Clorox stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean CLX will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Clorox stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies let us to avoid impetuous decisions based on our sentiments or the buzz surrounding the market. When selling, as well as buying, our setups are very easy to use but are only applicable for selling shares you already own, not for shorting CLX stock

A guiding principle is that you should never keep a trade that produces losses greater than those expected upon the buy. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Clorox stock?

In the current situation of Clorox there is not any eligible sell setup, so Clorox stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Clorox stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for Clorox

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Clorox ratings

Brokerage firmRating
Jun 29th, 2020
DA Davidson Strong buy

Technical analysis

CLX at Highs

Yesterday, Clorox hit new all-time highs (ATH) again at $232.10. Stock surged fast in the last 2 weeks, hiting new all-time highs 6 times

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Investors use supports and resistances to find price points in the stock price action that tend to work as glass ceiling, containing the price of a stock to move in certain direction. Supports are levels where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until meeting another support level. On the other side, resistances are where the price may find opposition as it moves up. Likewise, this means that the price is more likely to "rebound" at this level, and if it finally crosses this level, it will rise more easily until it finds the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $213.08 (-7.57% below)
  • S2: $210.49 (-8.69% below)
  • S3: $193.33 (-16.13% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known technique introduced by John Bollinger. It comprises three bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is trading very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price movements to reveal when the share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    RSI broke through the 70 level today, with a value of 71.08. Breaking out above the level of 70 is not a bearish signal, as shares can rise during several weeks being in the overvalued zone

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    Earnings and financials

    Clorox hosted the investors call and released the 1st-quarter report in early May. Clorox surpassed Wall St estimates and posted earnings of %s per-share of $1.89, that is a 13.17% better than expected compared to the previous forecasts of $1.67. Reported revenues were $1.8 billion compared to estimates of $1.7 billion.

    In comparison, the EPS for the same quarter last year was $1.44, so posted EPS means a improvement of 31.25%. Revenue exploded a 14.84% on an annualized basis in the 1st-quarter, from $1.6B to $1.8B last quarter.

    Clorox is hosting the quarterly earnings call on early next August. Forecasted Earnings per Share for this quarter is $1.94. Earnings reporting day has an additional risk for stock investors as the information published can soar and sink the shares price with very low volume and not respecting your buy or stop-loss orders. You can find more details about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.thecloroxcompany.com.

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