With the coronavirus still making its way around the world, folks are disinfecting just about everything. Unfortunately, there may not be enough supply moving forward.
Even with producers trying to ramp up supplies, it may not be enough.
According to Reuters, “Since the start of global lockdowns, makers of hygiene goods have seen a sustained boom in sales. While California-based Clorox typically holds aside excess supply for flu seasons, it says it has been unable to keep up with a six-fold increase in demand for many of its disinfectants.”
In addition, in May 2020, Clorox Chairman and CEO Benno Dorrer said the company increased production of disinfectant products by 40%. However, demand for disinfecting products rose 500%, according to CNBC. Seventh Generation delivered 63% more product in the first half of 2020, as compared to 2019. But demand is up 300% to 400%.
It’s part of the reason shares of CLX exploded from $156.37 to $235.17 in the last few months. There may be even more upside for CLX as demand for disinfecting wipes far outweighs supply.
With wipes one of the hottest commodities, Clorox is making major capital investments to ramp up its output each quarter. No wonder the company just topped analyst expectations thanks to a 33% jump in revenue from health and wellness business, which makes cleaning products and accounts for more than 40% of sales, says Reuters.
If you’re looking for a solid long-term opportunity, you may want to consider Clorox (CLX).