The Clorox Company (CLX)

Even during these dark times for all of us there are still some short term opportunities.

One of these is  Clorox’s (CLX) stock now at 197.88,  not only due to the bleach maker’s products which are purchased aggressively to help fight off the coronavirus but also due to other quantamental factors.
Our Quant model suggests short term long position. Our signal has shown a potential target between 210-215 the next few days and even more in the next 2-3 months. In this model we have used price momentum factors as well as features like cost factors, comparative to other stocks & opportunities factors etc.
In the cost factors we have to emphasize the following 2 facts :

a) The recent extraordinary cleaning product demand  will reduce the amount Clorox needs to spend on advertising.

b) The crash in crude oil will probably drive resin costs down which is a major cost in production.

Needless to say that, all the disinfectant products such as bleach and wipes represent about 25% of Clorox’s sales and  stand to see a lift from consumers’ who are stocking up on the items.
Taking into account the overall dismall market sentiment , CLX may be a very good short term choice out of  few favourable Long positions in the market right now.

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