Clorox (NYSE:CLX) shareholders outperformed a booming market last month. The stock gained 11% in May compared to a 4.5% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally added to a strong year for Clorox so far, which is up 34% while the broader market is down slightly.
Investors have shown Clorox more attention recently as the COVID-19 pandemic was seen to spark more demand for its disinfecting and cleaning supplies. The company confirmed that optimism by announcing on May 1 that organic sales shot higher by 18% in the fiscal third quarter. Clorox also revealed surging cash flow and rising profitability for the period .
CEO Benno Dorer said in a press release that sales are on pace to rise between 6% and 8% for the full fiscal year, which ends in July, up from their prior target of about 1%. But for investors to further stock price gains, the consumer staples giant will need to demonstrate that it can sustainably boost sales volumes even after the pandemic threat fades.