Clorox Hits Record With Wall Street Betting on Sanitizer Sales
(Bloomberg) -- Clorox Co. eked out a fifth straight gain to reach a record high amid the broad market’s dramatic declines, as investors bet on increased demand for the company’s hand sanitizers and disinfectants after U.S. officials warned that the new coronavirus could spread widely.
The shares have room for additional gains amid growing fears around the virus, said William Susman, managing director at Threadstone Advisors.
“Clorox is clearly positioned for a short-term gain as everyone needs additional disinfectant,” Susman said. “There could be a few winners.”
The market’s upbeat sentiment runs contrary to Clorox’s own recent statements, however. Earlier this month, Chief Executive Officer Benno Dorer told CNBC that it was too early to be certain of a sales boost for the company’s cleaning products.
Since then, the global death toll from the virus has surpassed 2,800, while the number of confirmed cases has risen to 82,700.
Clorox rose less than 1% to $168.70 at the close in New York, capping a 2.8% gain over the last five trading sessions. That was the third-biggest gain on the S&P 500 Index, which plunged 12% over the same period.
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