Clorox managed to keep its sales flat YoY and improve its EPS slightly, despite contracting gross margins, due to elevated energy prices. Based on a dividend discount model, assuming 2% growth in perpetuity and a 7.7% required rate of return, the upside from the current price levels seems to be limited. For these reasons, I upgrade CLX to hold.
The Reasons Why I Believe A Buy Rating Is Not Justified For Clorox (Rating Upgrade)
Source: Seeking Alpha