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Clorox Stock Rebounds: ROIC Hits Pre-Pandemic Levels
24 Dec
Summary
- Clorox's return on invested capital has rebounded sharply to around 25%.
- Jefferies sees innovation and portfolio additions driving future growth.
- Bank of America analyst lowered the price target to $110 with a Neutral rating.
The Clorox Company is showing signs of recovery, with its return on invested capital rebounding to around 25%, a level not seen since before the pandemic. This resurgence suggests a regained focus on efficiency and discipline within the business, despite a nearly 40% drop in its stock price since the beginning of 2025.
Analysts at Jefferies hold a constructive outlook, anticipating that strategic portfolio changes, including the acquisition of Touchland and VMS, will enhance product mix and profit margins. They project that ongoing innovation efforts will fuel incremental growth, citing low household penetration and international expansion opportunities.
Conversely, Bank of America's analyst Anna Lizzul has reduced the firm's price target for Clorox to $110 from $125, reiterating a Neutral rating. Lizzul's outlook remains cautious, emphasizing that the biggest unknown for consumer staples in 2026 is consumption growth, with sector valuations appearing uneven.
