Clorox Co (CLX Stock) may rise after four down days, coronavirus is key
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UNLOCK OFFER- NYSE: CLX has shed around 5% in four days, and could bounce back.
- Rising COVID-19 cases in the US could bring people indoors and increase the consumption of Clorox's products.
- The firm's new management enjoys credit from investors.
Coronavirus is a dominant theme for markets – stocks have risen on hopes for a new relief bill and dropped as pessimism about talks in Capitol Hill diminished. Clorox Co (NYSE: CLX) has mostly been moving with the broader mood. On Monday, the S&P 500 fell by 1.63% and CLX shed some 1.22%.
However, every crisis also presents opportunities. Clorox produces a wide range of products consumed at home – and the pandemic means more people are staying indoors. COVID-19 infections are surging in Europe and have already resulted in restrictions in various countries and regions, yet little attention has been paid to Clorox's home market.
As temperatures fall, cases are rising, especially in colder states like Wisconsin, Minnesota, and Illinois, but figures are advancing elsewhere. Even if governors refrain from imminent action to prevent social gatherings, more people are likely to work from home or keep their children away from school whenever possible.
Infections are rising in early autumn and the situation could further worsen as winter arrives. More time at home implies more demand for cleaning and other products, potentially boosting Clorox's sales and its stock price.
Another reason to be bullish on CLX is its new management. Linda Rendle has assumed the position of CEO a month ago, and still enjoys a "honeymoon" from investors. Moreover, as the new boss, she could make internal reorganization that would make Clorox more profitable.
CLX Stock Price
NYSE: CLX has been falling for four consecutive days, shedding nearly $10 and almost 5% from its closing peak of $221.17 on October 13. Critical support awaits at $209.11, which is the lowest point in October. The initial upside target is $215.13, a swing high from last week.
- NYSE: CLX has shed around 5% in four days, and could bounce back.
- Rising COVID-19 cases in the US could bring people indoors and increase the consumption of Clorox's products.
- The firm's new management enjoys credit from investors.
Coronavirus is a dominant theme for markets – stocks have risen on hopes for a new relief bill and dropped as pessimism about talks in Capitol Hill diminished. Clorox Co (NYSE: CLX) has mostly been moving with the broader mood. On Monday, the S&P 500 fell by 1.63% and CLX shed some 1.22%.
However, every crisis also presents opportunities. Clorox produces a wide range of products consumed at home – and the pandemic means more people are staying indoors. COVID-19 infections are surging in Europe and have already resulted in restrictions in various countries and regions, yet little attention has been paid to Clorox's home market.
As temperatures fall, cases are rising, especially in colder states like Wisconsin, Minnesota, and Illinois, but figures are advancing elsewhere. Even if governors refrain from imminent action to prevent social gatherings, more people are likely to work from home or keep their children away from school whenever possible.
Infections are rising in early autumn and the situation could further worsen as winter arrives. More time at home implies more demand for cleaning and other products, potentially boosting Clorox's sales and its stock price.
Another reason to be bullish on CLX is its new management. Linda Rendle has assumed the position of CEO a month ago, and still enjoys a "honeymoon" from investors. Moreover, as the new boss, she could make internal reorganization that would make Clorox more profitable.
CLX Stock Price
NYSE: CLX has been falling for four consecutive days, shedding nearly $10 and almost 5% from its closing peak of $221.17 on October 13. Critical support awaits at $209.11, which is the lowest point in October. The initial upside target is $215.13, a swing high from last week.
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