$CLX long-term buy! (4/5)Conviction: 4/5
Entry is not idea, could have better entry point if price goes down to retest support.
Main thesis
Bounced off long-term (1991) channel bottom in December
Bounced off 50M-MAas well
RSI-M also bounced off historical lows, although not levels with highest certainty
Confirmed breakthrough from downward resistance line last week
Touching lower bound of channel (2016)
Misc Info
P/S level of 3ish is high relative to historical levels, however much lower than some other tech companies...
P/S level of 3 is about the same as S&P 500
Healthcare ( AMEX:XLV ) looks good compared to AMEX:SPY , could carry this up as well
Potential Risks
RSI-W is heating up, although does not preclude from uptrend in medium term (about a year)
Just broke through (with confirmed close) last week from downtrend resistance line
Quick ratio is deteriorating from mid 2021
General markets are very expensive, and we all know correlation goes to 1 in selloff.
Revenue growth is negative ... likely as people become less sensitive to COVID?