After a tough bout with inflation that wasn't fully paired with additional pricing power, The Clorox Company (NYSE: CLX) looks like it's finally on the mend.
Last quarter's top line was only up 1% year over year, but gross profit margins jumped from 33% to 36.2% of sales. Earnings per share improved 48% from year-ago levels, boosted by (among other things) savvy cost-cutting. Guidance for the remainder of the fiscal year ending in June is healthy enough as well. All of it prodded the stock 7% higher on Friday of last week to a new multi-month high.
It could be an omen of more bullishness to come. I'm not interested in buying it, though -- at least, not yet. The stock is still ridiculously expensive, and it isn't apt to grow into a fairer price anytime in the near future.
For further details see:
Clorox Had a Great Quarter. Here's Why I'm Still Not Buying.