We recently published an article about the 8 Best Cleaning Materials Stocks To Invest In Now. Let’s look at where The Clorox Company (CLX)  stands against other cleaning materials stocks to invest in now.

Investors are reacting to an array of geopolitical and economic developments as volatility in the US equity market edges higher heading into year-end. The upcoming US election is posing a significant headwind that is taking a toll on sentiments in the equity markets. Similarly, concerns of a slowing economy crumbling amid high interest rates is also leading investors to rethink their investment portfolios.

Will the Soft Landing Narrative Play Out the Way Investors Want?

On October 16, Saira Malik, Nuveen CIO and head of equities and fixed income, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends, whether the soft landing narrative will play out, and the state of the economy, among others. She said that concerns exist over whether the soft landing narrative will play out the way investors want or not.

Investors are drinking the Kool Aid when it comes to a soft landing, and that can be seen in the earnings seasons so far where companies are coming in reasonably strong, especially in the non-tech side. The consumer also looks strong. But the bar is pretty low for this earnings season, with a 4% year over year earnings growth expected as compared to last quarter’s 11%. Thus, Malik is of the view that the narrative might not play out exactly the way it was anticipated.

How to Hedge Your Portfolio Amid Market Volatility

On August 8, Tiffany McGhee, CEO and CIO of Pivotal Advisors, appeared on CNBC to discuss the market’s volatility and ways to hedge your portfolio. She expressed her inclination towards holding a diversified portfolio and an asset allocation strategy set. She said that it is really exciting getting caught up in the large-cap growth stocks that really drive the performance of the market for so long. But it is really important to have a balance portfolio, and thus she reiterated that investors should really consider having defensive stocks if they don’t have any.

Defensive stocks have long been a popular addition to portfolios, as they hold the potential to protect investors from the transitions of the stock market. They can produce good income, stable returns, and pose long-term value for investors.

Our Methodology

To ranks the 8 best cleaning materials stocks to invest in now, we used the Finviz screener, ETFs, and online rankings to first identify the top cleaning material stocks. We then selected 8 stocks that were also the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of their hedge fund holders as of Q2 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

The Clorox Company (NYSE:CLX)

Number of Hedge Fund Holders as of Q2 2024: 38

The Clorox Company (NYSE:CLX) is a multinational marketer and professional and consumer goods manufacturer. It operates through four segments: Household, Health and Wellness, Lifestyle, and International. The Health and Wellness segment comprises cleaning, disinfecting, and professional products sold and marketed under various brands. The company’s International segment comprises products sold outside the US.

The Clorox Company (NYSE:CLX) ended fiscal 2024 with solid operation strength, fully restoring its supply and distribution and recovering most of its lost market share. Despite the significant disruption caused by the cyber attack, which led to an 18% organic sales decline in Q1, the company closed out with flat organic sales for the complete year.

Its Q4 2024 results highlight the continuous advancement of its strategy, which focuses on accelerating profitable growth, strengthening its competitive advantage, and setting the company up for long-term success. The company is also focusing on recovering from the cyber-attack that occurred earlier in the year.

The Clorox Company (NYSE:CLX) is rebuilding its margin to fuel growth and has delivered its seventh consecutive quarter of margin expansion. It is on the path to bounce back to its pre-pandemic gross margins in fiscal year 2025. Although consumers are expected to remain under pressure in FY 2025, the company has a strong portfolio of brands in essential categories that have shown resilience during uncertain and challenging times. It is continually investing in its brands to maintain the value superiority that gives it a competitive market edge.

The company’s future plans at the investment level are strong. They aim to deliver a robust financial performance in FY 2025 and win consumers. This is supported by a bounce back to pre-pandemic gross margin, volume-driven sales growth, and free cash flow aligning with its long-term goals.

Overall, The Clorox Company (NYSE:CLX) ranks 5th among the 8 best cleaning materials stocks to buy now. While we acknowledge the potential of CLX to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.