This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

Oakland, California, might not be too pleased with the performance of the Raiders, but the (other) City by the Bay can take some pride in The Clorox Company (NYSE: CLX), a hometown stock made good. Even those of you bracing for the worst-case economic scenario can take heart in the fact that Clorox has been around since 1913, and successfully weathered two World Wars and the Great Depression.

In addition to its eponymous bleach, Clorox produces a slew of other well-known consumer staples. You may recognize such brand names as Pine-Sol, Formula 409, Brita, Glad, Hidden Valley, and Burt's Bees -- one of the newest additions to the CLX family. The Burt's Bees buy indicates that Clorox isn't resting on its stable of staples; instead, the company is actively trying to stay relevant amid a shifting consumer climate.

The home-goods firm released its first-quarter earnings on October 31 and cruised past analysts' profit estimates by seven cents per share. Clorox trimmed its sales outlook due to the expected impact of declining foreign currencies, but Chairman and CEO Don Knauss showed no hint of vulnerability. "We will not give consumers a reason to choose another brand," Knauss vowed on a conference call.

The Clorox Company (NYSE: CLX) Q3 2007 earnings showed across the board sales and volume growth in all three of the company's major business segments. Net earnings were $129 million, or $0.84 per diluted share, a $19 million increase over Q3 2006 numbers. Quarterly EPS diluted included $0.04 per share, $10 million, equally divided between restructuring costs and upgraded IT services company wide. Globally, sales were up 7% to $1.24 billion for the quarter, while volume increased 8%. Clorox CEO Don Knauss credits three factors with contributing to Clorox's success: cost savings, price increases, and lower commodity costs.

Compared to Q3 2006, Clorox's Household Group division showed sales growth of 5%, volume growth of 9%, and 8% increase in pretax earnings. These figures were driven in part by record sales of Clorox disinfecting wipes, and increased shipments of Armor All and STP auto-care products. This division primarily services the North American market.

The Specialty Products Group showed 7% sales growth, 6% volume growth, and a hefty 19% increase in pretax earnings. The winner in this product category was Fresh Step kitty litter, which has increased sales for four straight quarters. Kingsford charcoal and Glad trash bags were also category leaders.

While Clorox makes most of its revenues in the North American market, it shows its largest growth potential in its international segment, where sales growth increased 16%, volume grew 13%, and pretax earnings increased 15%. Latin America is proving to be a lucrative market for laundry and cleaning products. This is good as the Australian market showed declines in both sales and volume.

For FY 2007, Clorox anticipates sales growth of 3-5% and diluted EPS of $3.21-$3.27, including $0.09 diluted EPS for continuing restructuring costs and IT upgrades through 2008. The stock closed on Friday at $67.07, down $0.01. At PE of $21.53, Clorox compares favorably (slightly) with Proctor & Gamble Co. (NYSE: PG) at $21.73, and Colgate-Palmolive Co. (NYSE: CL) with a PE of $24.42. Potential investors will want to wait until Clorox senior management rolls out its detailed restructuring plan, scheduled to be made public on May 24. Clorox may shed low-performing, low-margin brands, and may rearrange spending to target more potential growth opportunities outside North America.