Should You Forget Clorox Stock Near a 52-Week Low?

Source Motley_fool

Key Points

  • Clorox expects modest organic sales growth in fiscal 2027, but it'll absorb extra costs as it integrates a recent acquisition.

  • Debt has doubled to about $5 billion.

  • The stock offers a high 5.8% yield, but the payout ratio is elevated relative to earnings.

  • 10 stocks we like better than Clorox ›

Shares of Clorox (NYSE: CLX), the maker of Clorox bleach and Purell hand sanitizer, trade about 9% above their 52-week low of $79.12 and down about 27% over the past year. A beaten-down household name with a high yield can look like a bargain. The problem is that the business is still under real pressure, which is why investors may want to stay away for now.

Organic sales, which exclude acquisitions, fell 8% in fiscal 2026, mostly because Clorox was lapping extra shipments to retailers in the previous year. Management expects organic growth of 3.5% to 4.5% in fiscal 2027, which is an improvement, but other problems may continue to weigh on the stock.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

The purchase of GOJO, the maker of Purell, should add about 9.5 points to fiscal 2027 net sales. But one-time deal costs will hit product manufacturing, and selling and administrative expenses will weigh on margins.

Analyst studying charts.

Image source: Getty Images.

Meanwhile, total debt roughly doubled over the past year to about $5.1 billion. The dividend yields about 5.8%, but the company's payout ratio -- the amount of dividends paid relative to earnings -- is elevated at 103%, which isn't sustainable unless earnings grow.

CEO Linda Rendle expressed caution for the next year: "As we begin fiscal year 2027, we expect the operating environment to remain challenging, with continued cost volatility and a value-seeking consumer."

At about 15 times fiscal 2027 consensus earnings estimates, the stock isn't expensive. Still, given flat sales, GOJO integration costs, higher debt, and a stretched dividend payout ratio, investors may want to wait before buying shares.

Should you buy stock in Clorox right now?

Before you buy stock in Clorox, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Clorox wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $355,124!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*

Now, it’s worth noting Stock Advisor’s total average return is 901% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of October 26, 2026.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Fed Rate Decision This Week: Will the US Dollar Strengthen and Gold Prices Fall? (26 October 2026)Fed decision, US inflation and Middle East tensions take centre stage. Explore the US dollar, gold and AUD/USD outlook for Australian traders.
Author  Mitrade Team
13 hours ago
Fed decision, US inflation and Middle East tensions take centre stage. Explore the US dollar, gold and AUD/USD outlook for Australian traders.
placeholder
Fed Week Puts Stocks, Bitcoin, and DXY on Collision Course Before $11 Billion ExpiryOne week could decide what your stocks, your Bitcoin (BTC), and your dollars are worth by Christmas. From Wednesday to Friday, the Federal Reserve meets, inflation data lands, and $11 billion in Bitco
Author  Beincrypto
20 hours ago
One week could decide what your stocks, your Bitcoin (BTC), and your dollars are worth by Christmas. From Wednesday to Friday, the Federal Reserve meets, inflation data lands, and $11 billion in Bitco
placeholder
Bitcoin and Gold Hit a Historic First in 2026. The Two “Safe Havens” Are Now the Worst AssetsBitcoin (BTC) and gold are the two worst-performing major assets of 2026, down 7.3% and 7.5%, according to Creative Planning strategist Charlie Bilello. He says no calendar year in his records has put
Author  Beincrypto
20 hours ago
Bitcoin (BTC) and gold are the two worst-performing major assets of 2026, down 7.3% and 7.5%, according to Creative Planning strategist Charlie Bilello. He says no calendar year in his records has put
placeholder
Trump Calls Off Iran Strike But Will Oil Hold Above $100?West Texas Intermediate (WTI) fell as low as $101.69 on Sunday night after President Donald Trump ruled out an immediate Iran strike. The dip leaves US oil above $100 and about 53% higher than before
Author  Beincrypto
20 hours ago
West Texas Intermediate (WTI) fell as low as $101.69 on Sunday night after President Donald Trump ruled out an immediate Iran strike. The dip leaves US oil above $100 and about 53% higher than before
placeholder
3 Big Tech Earnings Reports to Watch as AI Bills Keep GrowingBig tech earnings arrive this week, with Microsoft, Alphabet, and Amazon all releasing quarterly reports.In their latest quarters, Google Cloud grew 82%, Azure 42%, and Amazon Web Services (AWS) 37%,
Author  Beincrypto
20 hours ago
Big tech earnings arrive this week, with Microsoft, Alphabet, and Amazon all releasing quarterly reports.In their latest quarters, Google Cloud grew 82%, Azure 42%, and Amazon Web Services (AWS) 37%,
goTop
quote