Trade-Ideas LLC identified

Clorox

(

CLX

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Clorox as such a stock due to the following factors:

  • CLX has 13x the normal benchmarked social activity for this time of the day compared to its average of 2.23 mentions/day.
  • CLX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $188.7 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on CLX:

The Clorox Company manufactures and markets consumer and professional products worldwide. The company operates through four segments: Cleaning, Household, Lifestyle, and International. The stock currently has a dividend yield of 2.4%. CLX has a PE ratio of 27. Currently there are 2 analysts that rate Clorox a buy, 5 analysts rate it a sell, and 7 rate it a hold.

TheStreet Recommends

The average volume for Clorox has been 1.1 million shares per day over the past 30 days. Clorox has a market cap of $16.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.39 and a short float of 4.9% with 4.31 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Clorox as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 14.0%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CLOROX CO/DE has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CLOROX CO/DE increased its bottom line by earning $4.59 versus $4.39 in the prior year. This year, the market expects an improvement in earnings ($4.87 versus $4.59).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Products industry. The net income increased by 91.1% when compared to the same quarter one year prior, rising from $90.00 million to $172.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Products industry and the overall market, CLOROX CO/DE's return on equity significantly exceeds that of both the industry average and the S&P 500.

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