Market Leader Clorox (CLX) is Still Charging Ahead - Cramer
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Price: $106.69 +0.61%
Rating Summary:
1 Buy, 20 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 20 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Clorox (NYSE: CLX) shares are catching an early bid Friday morning following a bullish view from the Sultan of Securities, Jim Cramer.
On Thursday evening's Mad Money, Cramer said Clorox is a recession-proof name which pays a 60 cent quarterly dividend, currently yielding about 3.6 percent, and has a 34-year track record of raising that dividend.
Why should an investor consider Clorox? Are they afraid it might "clean out" their portfolio? Not to worry, says Cramer. Though Clorox does have commodity cost issues, its turnaround plan and market opportunities still make it a golden buy.
Cramer points out that about 90 percent of Clorox's offerings are either number one or number two in their category. Despite this, Clorox has no plans to stand still. Clorox is making moves on improving the relevance of its brands as well as capitalizing on emerging trends.
Some of the moves include the acquisition of Burt's Bees products, showing Clorox is leaning toward the eco-friendly product crowd. Clorox is making more earth-friendly cleaners, as well as pushing Brita filters as a great alternative to bottled water, which uses plastic containers for storage.
Cramer also said Clorox is making some smart cost-cuts, and has plenty of international opportunity ahead, as only 20 percent of sales come from outside the U.S.
With Clorox stock trading at about 16x earnings, and an expected 10 percent growth rate, this may be one big-cap name paying back more than just dividends to investors.
Clorox is up about 1.4 percent Friday.
On Thursday evening's Mad Money, Cramer said Clorox is a recession-proof name which pays a 60 cent quarterly dividend, currently yielding about 3.6 percent, and has a 34-year track record of raising that dividend.
Why should an investor consider Clorox? Are they afraid it might "clean out" their portfolio? Not to worry, says Cramer. Though Clorox does have commodity cost issues, its turnaround plan and market opportunities still make it a golden buy.
Cramer points out that about 90 percent of Clorox's offerings are either number one or number two in their category. Despite this, Clorox has no plans to stand still. Clorox is making moves on improving the relevance of its brands as well as capitalizing on emerging trends.
Some of the moves include the acquisition of Burt's Bees products, showing Clorox is leaning toward the eco-friendly product crowd. Clorox is making more earth-friendly cleaners, as well as pushing Brita filters as a great alternative to bottled water, which uses plastic containers for storage.
Cramer also said Clorox is making some smart cost-cuts, and has plenty of international opportunity ahead, as only 20 percent of sales come from outside the U.S.
With Clorox stock trading at about 16x earnings, and an expected 10 percent growth rate, this may be one big-cap name paying back more than just dividends to investors.
Clorox is up about 1.4 percent Friday.
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