4-Star Stocks Poised to Pop: Clorox

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cleaning products giant Clorox (NYS: CLX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Clorox's business and see what CAPS investors are saying about the stock right now.

Clorox facts

Headquarters (founded)

Oakland, Calif. (1913)

Market Cap

$9.24 billion

Industry

Household products

Trailing-12-Month Revenue

$5.23 billion

Management

Chairman/CEO Donald Knauss
CFO Daniel Heinrich

Return on Capital (Average, Past 3 Years)

21.9%

Cash/Debt

$259 million / $2.58 billion

Dividend Yield

3.6%

Competitors

Church & Dwight (NYS: CHD)
Colgate-Palmolive (NYS: CL)
Procter & Gamble (NYS: PG)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 818 members who have rated Clorox believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars Chemdawg and PsychoDr, both of whom are ranked in the top 10% of our community.

Just last week, Chemdawg tapped Clorox as a timely income opportunity: "you can really 'clean house' with a stock like this one. solid dividend and a touch cheaper after market selloff."

In fact, Clorox currently sports a juicy dividend yield of 3.7%. That's higher than that of rivals such as Church & Dwight (0.9%), Colgate (2.8%), and Procter & Gamble (3.5%).

CAPS All-Star PsychoDr expands on the Clorox outperform argument:

Be it purchasing kitty litter, washing clothes, or storing leftovers, one thing remains constant. Clorox Company is everywhere. ... Its products are self-sustaining and garner significant brand loyalty. It is a constant dividend raiser, with strong potential for price appreciation based only on a return to normal P/E levels. A current dividend that pays more than 3% and a 25 year history of annual dividend increases.

What do you think about Clorox, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Clorox and Procter & Gamble. The Motley Fool owns shares of Clorox. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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