The Clorox Company (CLX) Hit a 52 Week High, Can the Run Continue?

Shares of Clorox (CLX) have been strong performers lately, with the stock up 8.1% over the past month. The stock hit a new 52-week high of $171.35 in the previous session. Clorox has gained 18.7% since the start of the year compared to the 4.1% move for the Zacks Consumer Staples sector and the 63.3% return for the Zacks Consumer Products - Staples industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 30, 2024, Clorox reported EPS of $1.86 versus consensus estimate of $1.36 while it beat the consensus revenue estimate by 8.13%.For the current fiscal year, Clorox is expected to post earnings of $6.85 per share on $7.08 billion in revenues. This represents a 11.02% change in EPS on a -0.24% change in revenues. For the next fiscal year, the company is expected to earn $7.17 per share on $7.23 billion in revenues. This represents a year-over-year change of 4.75% and 2.24%, respectively.Valuation MetricsClorox may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Clorox has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 24.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.1X. On a trailing cash flow basis, the stock currently trades at 20.9X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 3.13. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Clorox currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Clorox fits the bill. Thus, it seems as though Clorox shares could still be poised for more gains ahead.How Does CLX Stack Up to the Competition?Shares of CLX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Leslie's, Inc. (LESL). LESL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.Earnings were strong last quarter. Leslie's, Inc. beat our consensus estimate by 6.25%, and for the current fiscal year, LESL is expected to post earnings of $0.19 per share on revenue of $1.34 billion.Shares of Leslie's, Inc. have gained 13.1% over the past month, and currently trade at a forward P/E of 17.09X and a P/CF of 7.5X.The Consumer Products - Staples industry may rank in the bottom 57% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CLX and LESL, even beyond their own solid fundamental situation.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Leslie's, Inc. (LESL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks