Clorox stocks pile up as pandemic demand fades
Clorox is one of the financial losses in the aftermath of the COVID-19 pandemic, as an obsessive cleaning population has relaxed disinfection protocols as the world reopens amid expanding vaccination distribution. About 155 million people in the United States are now fully vaccinated.
During the pandemic, Clorox and other disinfectant wipes were hard to find due to purchasing limits imposed by supermarkets and other retailers. That has now changed in the post-pandemic world, with greater short-term growth the company has seen giving way to more modest long-term prospects, CNN reported Thursday (July 1).
As for the company’s stock, five Wall Street analysts called Clorox a “sell” and eight recommended “hold”. Only four analysts classified Clorox as a “buy,” CNN reported, citing data from Refinitiv.
“Clorox was the star child of the COVID lockdown. But there is an opportunity beyond the wipes, ”said John Boylan, senior equity analyst at Edward Jones. He noted that Clorox also has Glad trash bags as well as other well-known consumer brands, including the Fresh Step cat litter and the Hidden Valley Ranch line of salad dressings.
Clorox shares fell more than 10%, making it one of the worst performers on the S&P 500, according to the report. The share price has fallen 25% from its peak during last summer’s pandemic. Sales and profits are expected to be stable in 2022.
“At the height of the pandemic, our growth was over 20%. We believe that in the long term, we will grow by 3% to 5% “, Kevin JacobsenClorox CFO said at a Deutsche Bank virtual conference earlier in June.
April quarterly sales were flat from a year ago, Clorox said, and adjusted profits fell nearly 15%. The next fiscal year, which begins Thursday, July 1, is expected to record stable revenues and profits, CNN reported.
The travel industry iis now back, but hotels are still working hard to maintain higher cleanliness protocols to encourage people to check in. The US Travel Association and the American Hotel & Lodging Association (AHLA) have launched guidelines to help the industry bounce back.