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Investing.com - JPMorgan Chase has placed Clorox (NYSE:CLX) on its Negative Catalyst Watch list, citing deteriorating channel trends that could impact the company’s financial performance. The stock, currently trading near its 52-week low at $120, has declined 24% year-to-date, though InvestingPro analysis suggests the shares are slightly undervalued.
The investment bank expects Clorox to deliver results at the bottom of its top-line guidance range, projecting a 19% decline excluding the Vitamins, Minerals and Supplements (VMS) segment. This weakness could lead to significant earnings per share deleverage in the upcoming quarter.
JPMorgan now forecasts first-quarter earnings per share of $0.60 for Clorox, substantially below the consensus estimate of $0.90. The firm indicated it "would not be surprised" if management reduces its outlook for fiscal year 2026.
Despite the near-term concerns, JPMorgan maintained its Neutral rating on Clorox stock, characterizing current challenges as "near-term hiccups" rather than fundamental problems with the business.
The investment bank remains optimistic about Clorox’s longer-term prospects, noting the company should benefit from its recent IT system overhaul, improved productivity initiatives, and multi-year innovation platforms.
In other recent news, Clorox Company reported its fourth-quarter and full-year 2025 earnings, significantly exceeding expectations. The company achieved an earnings per share (EPS) of $2.87, surpassing the forecasted $2.21, marking a surprise of nearly 30%. Additionally, Clorox’s revenue reached $2 billion, outperforming the anticipated $1.94 billion. In analyst updates, TD Cowen adjusted its price target for Clorox to $117, citing service disruptions during the company’s ERP system transition and ongoing weakness in organic sales growth. Conversely, Jefferies maintained a Buy rating with a $155 price target, noting that Clorox has moved beyond the initial challenges of the ERP rollout. In product news, Clorox introduced Clorox Screen+ Sanitizing Wipes, designed to clean and sanitize electronic devices. These wipes aim to address concerns about germs on shared devices in various settings. These developments provide a comprehensive view of Clorox’s recent activities and financial performance.
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