4-Star Stocks Poised to Pop: Clorox

Recs

8

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products maker Clorox (NYSE: CLX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Clorox's business and see what CAPS investors are saying about the stock right now.

Clorox facts

Headquarters (founded)

Oakland, Calif. (1913)

Market Cap

$7.78 billion

Industry

Cleaning Products

Trailing-12-Month Revenue

$5.45 billion

Management

Chairman/CEO Donald Knauss (since 2006)
CFO Daniel Heinrich (since 2003)

Brands

Clorox, Pine-Sol, Glad, Armor All, Brita

Return on Equity (average, last three years)

21.8%

Dividend Yield

3.7%

Competitors

Procter & Gamble (NYSE: PG)
Colgate-Palmolive (NYSE: CL)

CAPS Members Bullish on CLX Also Bullish on

Johnson & Johnson (NYSE: JNJ)
General Electric (NYSE: GE)

CAPS Members Bearish on CLX Also Bearish on

Citigroup (NYSE: C)
Starbucks (Nasdaq: SBUX)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 443 of the 470 members who have rated Clorox -- some 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars johnnywandango and my fellow Fool Matt Koppenheffer (TMFKopp), both of whom are ranked in the top 20% of our community.

Last month, johnnywandango wrote that Clorox "will continue to supply multiple well known consumer products for many years, and will make an ample and stable return over a long-term time horizon." Our CAPS member concludes: "[Clorox] has a broad product lineup including Clorox and Clorox 2 products, Glad, Armor All, Fresh Step, etc. and their sales should remain strong for many years into the future."

In a pitch from one week later, Matt elaborates on Clorox as a rather boring (but stable) way to make a buck:

Some may quibble with calling Clorox "dynamic." After all, how exciting are Clorox bleach, Glad garbage bags, and Kingsford charcoal? But when a company is returning as much cash to shareholders as Clorox is, I don't need adventure and excitement to get amped. Between the dependable performance from its core business, its growth and profitability improvement initiatives, and the strong growth it's seeing in its international segment, I'm ready to give Clorox's stock a thumbs-up.

What do you think about Clorox, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

“Make Big Money With Options” Motley Fool CFO Ollen Douglass recently made over $100,000 buying options on 7 well known stocks. Now we’re committed to turning his small fortune into a massive one! And we want you to join us! Enter your email address to hear more:

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Procter & Gamble and Johnson & Johnson are Motley Fool Income Investor picks. Starbucks is a selection of Stock Advisor and Inside Value. The Fool owns shares of Procter & Gamble and Starbucks. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 921776, ~/Articles/ArticleHandler.aspx, 12/1/2009 11:48:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Is Everybody Losing It in Finance's Nervous Breakdown?

Related Tickers

12/1/2009 4:00 PM
JNJ $63.51 Up +0.67 +1.07%
Johnson & Johnson CAPS Rating: *****
PG $62.91 Up +0.56 +0.90%
The Procter & Gamb… CAPS Rating: *****
GE $16.17 Up +0.15 +0.94%
General Electric C… CAPS Rating: ****
SBUX $21.73 Down -0.17 -0.78%
Starbucks Corp CAPS Rating: **
CL $85.75 Up +1.56 +1.85%
Colgate-Palmolive… CAPS Rating: ****
CLX $60.73 Up +0.46 +0.76%
The Clorox Company CAPS Rating: ****
C $4.10 Down -0.01 -0.24%
Citigroup, Inc. CAPS Rating: ***

Community: Investing Wiki

Term Of The Hour

Dollar-cost averaging: Dollar-cost averaging is the discipline of regularly buying shares of stock. An investor using this long-term technique would invest a set amount every month, as opposed to saving it up and investing it in one lump sum.

Want to learn more or edit this definition?
Click here to read more!