NEW YORK, May 3 (Reuters) - Shares in Clorox Co could continue to outperform rivals as margins increase and less than 15 percent of its business is vulnerable to the rising U.S. dollar, according to a Barron's report.
The story in the May 4 edition said that while Clorox price-to-earnings ratio of 15 makes it more expensive than rivals Kimberly-Clark Corp and Procter & Gamble, it remained below its own 10-year median P/E ratio of 19.2.
Because less than 15 percent of Clorox sales come from outside the United States, the weekly said it is faring better than rivals in the face of a rising U.S. dollar.
Clorox shares closed down 75 cents at $55.30 on New York Stock Exchange on Friday, but some analysts expect it to rise as they see its profit margins increasing.
'We expect it to have rising profit margins, and when we look out five years, we have a price target of $118, or a 15 percent annualized return,' Tim Call, a money manager at investment advisory firm Capital Management Corp said, according to the report.
(Reporting by Sinead Carew, editing by Leslie Gevirtz) Keywords: CLOROX/ (email:sinead.carew@thomsonreuters.com; +1 646-223-6186) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The story in the May 4 edition said that while Clorox price-to-earnings ratio of 15 makes it more expensive than rivals Kimberly-Clark Corp and Procter & Gamble, it remained below its own 10-year median P/E ratio of 19.2.
Because less than 15 percent of Clorox sales come from outside the United States, the weekly said it is faring better than rivals in the face of a rising U.S. dollar.
Clorox shares closed down 75 cents at $55.30 on New York Stock Exchange on Friday, but some analysts expect it to rise as they see its profit margins increasing.
'We expect it to have rising profit margins, and when we look out five years, we have a price target of $118, or a 15 percent annualized return,' Tim Call, a money manager at investment advisory firm Capital Management Corp said, according to the report.
(Reporting by Sinead Carew, editing by Leslie Gevirtz) Keywords: CLOROX/ (email:sinead.carew@thomsonreuters.com; +1 646-223-6186) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.