🧽 Wiping It Clean?
Clorox is producing and shipping its highly popular wipes as fast as the company can make them
Hey Global Investor, here's what you need to know before the US markets open.
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Wiping It Clean?
Clorox is producing and shipping its highly popular wipes as fast as the company can make them.
Background: California-based Clorox is a global manufacturer and marketer of consumer and professional products, from personal care to pet care.
Sanitizer wipes, along with hand sanitizer and toilet paper, completed the triumvirate that people hoarded during the pandemic. It seemed these products couldn’t be put on the grocery store shelves fast enough! Clorox’s disinfecting wipes are deemed a necessity in schools, restaurants, and workplaces.
The company’s stock rose 40% between February and September in response to demand across the 20+ brands under its belt. However, the stock has fallen somewhat since then as the company struggled to cope with the increased demand. It even shipped products by air to meet consumer needs.
What Happened? Over the past few months, the company added ten additional third party manufacturers, operated its factories 24x7, and took a stance that it would not raise product prices during the pandemic.
The slump in September sales has slowly given way to increasing market share as the recent numbers indicate. This month, Clorox reported its strongest quarterly sales growth in over two decades and raised its full-year guidance.
The company has seen escalating demand for all of its products, from disinfectants to water filters. Home hygiene has taken center stage as people spent long hours couped up inside.
Wipe sales alone are up 76% for the month. Clorox now expects full-year sales to rise 5% to 9% and earnings per share to grow between 5% and 8%. Enough for analysts to think Clorox can continue to beat expectations and increase momentum.
Market Reaction: The stock is up 34% YTD. On Friday, Clorox closed at $203.09, up 1.17%
Company Snapshot 📈
CLX $203.09 +2.34 (+1.17%)
Analyst Rating (15 Analysts) BUY 20%, HOLD 53%, SELL 27%
Biggest Buy of the Year: Data giant S&P Global to buy IHS Markit for $44 billion in the largest deal of 2020 (SPGI +1.04%)
Consistent Growth: Zoom investors are looking to a post-pandemic 2021 even with current growth at over 300% (ZM +6.29%)
In Two Weeks: Tesla could widen release of 'self-driving' software in two weeks (TSLA +2.05%)
Later Today 🕒
7.30 PM IST: Pending home sales index
After Market Close: Arco Platform Earnings (ARCE)
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