The Clorox Company (NYSE: CLX) has struggled to regain momentum after its pandemic boom. The stock trades near $120/share, down about 24% over the past year, as volume declines and softer consumer spending weigh on results. Still, improving margins and cost control efforts are helping restore profitability after a challenging stretch.
Recently, Clorox reported quarterly results that exceeded expectations, supported by stronger pricing and lower supply chain costs. Management also announced plans to expand automation and digital initiatives to drive long-term efficiency. These steps show the company’s focus on rebuilding margins and protecting its household brands in a tougher retail environment.
This article explores where Wall Street analysts think Clorox could trade by 2028. We’ve reviewed consensus forecasts and TIKR’s Guided Valuation Model to outline what that might mean for investors.
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Analyst Price Targets Suggest Modest Upside
Clorox trades at about $120/share today. The average analyst price target sits near $131/share, suggesting around 9% upside over the next year. Forecasts are closely grouped, showing limited conviction among analysts:
- High estimate: ~$166/share
- Low estimate: ~$110/share
- Median target: ~$128/share
- Ratings: 1 Buy, 1 Outperform, 13 Holds, 2 Underperforms, 2 Sells
For investors, this points to modest upside and a stock that’s likely already reflecting most near-term expectations. Analysts see earnings stability, but few expect a meaningful re-rating unless revenue trends improve or cost efficiencies exceed targets.
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Clorox: Growth Outlook and Valuation
The company’s fundamentals appear stable, but not particularly strong:
- Revenue CAGR (to 2028): (0.4%)
- Operating Margin: ~17.4%
- Forward P/E: ~20x
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using these inputs suggests ~$159/share by 2028
- That implies about 33% upside, or roughly 11% annualized returns
These forecasts show that Clorox could gradually recover profitability, though not return to high growth. For investors, that means returns may come from margin expansion and consistent dividends rather than accelerating sales.
Clorox may not be a high-growth story, but its household brands, improving profitability, and reliable cash flow make it appealing to investors looking for stability and income.
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What’s Driving the Optimism?
Clorox continues to make solid progress rebuilding profitability. Margins have improved, supported by price increases, lower input costs, and ongoing productivity programs. Investments in automation and supply chain modernization are helping offset weaker volumes and streamline operations.
Management is also focused on strengthening its core categories such as cleaning and household essentials, where its brands like Clorox, Pine-Sol, and Glad continue to hold strong positions. These efforts could support steady cash flow and profitability even in a slower-demand environment.
For investors, these improvements suggest Clorox is rebuilding the right way by prioritizing efficiency, maintaining pricing power, and sustaining a healthy dividend.
Bear Case: Slow Growth and Premium Valuation
Even with progress on margins, Clorox’s sales growth outlook remains weak. Analysts expect flat to slightly negative revenue trends through 2028 as consumers trade down to cheaper alternatives and post-pandemic demand normalizes.
At around 20x forward earnings, the stock trades near its historical average but doesn’t look cheap given muted growth. Inflation, private-label competition, and category fatigue all present ongoing risks.
For investors, this means Clorox could remain a steady but slow mover with strong cash flow and dividends, but limited growth unless volumes recover or innovation reignites demand.
Outlook for 2028: What Could Clorox Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using these assumptions suggests Clorox could trade near $159/share by 2028. That represents about 33% total upside, or roughly 11% annualized returns.
While that would mark a steady recovery from today’s levels, it already assumes continued cost discipline and stable pricing. For stronger upside, Clorox would need to exceed expectations on margin expansion or see a pickup in demand across key categories.
For investors, Clorox looks like a defensive compounder, not a fast grower, but a resilient brand that can quietly deliver stable income and gradual appreciation. It’s a stock to hold for consistency and dividends rather than rapid gains.
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