15 Best Defensive Stocks Amid Market Volatility

9. The Clorox Company (NYSE:CLX)

Beta: 0.45

Number of Hedge Fund Holders: 54

The Clorox Company (NYSE:CLX) is a consumer staples company recognized for its extensive portfolio of household cleaning, personal care, and wellness brands. Its products, such as CloroxPro, Pine-Sol, Burt’s Bees, and Glad, benefit from strong brand recognition and customer loyalty.

In Q2 FY 2025, the company reported a 15% decline in net sales, primarily due to the lingering effects of the August 2023 cyberattack and the divestitures of its VMS and Argentina businesses. Despite a modest 80 basis point year-over-year increase in gross margins to 43.8%, adjusted EPS fell 28% to $1.55, though cost-saving measures helped offset some of the impact. The Clorox Company (NYSE:CLX) is targeting to restore its gross margins to peak levels of 44% in 2025 and intends to expand EBIT margins by 25 to 50 basis points annually starting in fiscal year 2026, outlining a clear strategy for financial improvement.

The Clorox Company (NYSE:CLX) is also set to take full ownership of the Glad joint venture by January 2026 through the acquisition of The Procter & Gamble Company (NYSE:PG)’s stake. With benefits flowing in from its cost efficiency efforts in recent quarters, the company revised the FY 2025 outlook and now anticipates a 1%-2% decline in net sales while it raised the lower end of its gross margin improvement forecast to 125-150 basis points from the prior 100-150 basis points. Additionally, adjusted EPS is now projected to be between $6.95 and $7.35, up from the earlier estimate of $6.65 to $6.90.

Overall, The Clorox Company (NYSE:CLX) maintains a resilient business model, a strong portfolio of brands, and steady demand for its household and personal care products. While inflation and supply chain disruptions have pressured margins, the company is focused on price adjustments and cost-saving measures to drive recovery.