(NYSE: CLX) owns a broad collection of iconic brands, but its namesake product is highly correlated with cleaning. The stock took off in 2020 as the coronavirus spread across the globe and disinfecting surfaces to stop the spread became a priority. Eventually, though, pandemic concerns eased.

Today Clorox stock is trading down roughly 30% from the high-water mark achieved in 2020. Here's what went wrong and why investors should still like the shares.

Demand for cleaning products spiked in the early days of the pandemic as people started to clean just about everything in an attempt to avoid the illness. There was so much buying that Clorox couldn't keep up, so it hired contract manufacturers to produce its products for it. That kept retailers' shelves filled, but it came at a high cost. Investors only looked at the demand side of the equation in a time of market turmoil and sent Clorox's shares sharply higher.

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Source Fool.com