Shares of The Scotts Miracle-Gro Company (SMG - Free Report) scaled a fresh 52-week high of $171.19 on Aug 20, before closing the session at $170.60.
The company has a market cap of around $9.5 billion. Average volume of shares traded in the past three months was around 412K.
The stock has rallied 56.6% in the past year against the industry’s 8.4% decline.
What’s Driving SMG?
Solid fiscal third-quarter performance, upbeat view and bright prospects in the Hawthorne unit are major factors driving the company’s shares.
Scotts Miracle-Gro’s adjusted earnings per share (EPS) rose 22% year over year in third-quarter fiscal 2020 (ended Jun 27, 2020) to $3.80. The figure beat the Zacks Consensus Estimate of $3.35.
Also, net sales rose 27.6% year over year to $1,492.7 million and beat the consensus mark of $1,323.6 million.
In July, the company revised its sales growth outlook for fiscal 2020.
In the U.S. Consumer unit, the company projects sales growth of 20-22% for the fiscal compared with 9-11% expected earlier. It now expects sales in the Hawthorne segment to rise 55-60% in fiscal 2020 compared with the previous expectation of 45-50%.
Based on these assumptions, Scotts Miracle-Gro now projects adjusted EPS between $6.65 and $6.85 compared with $5.65-$5.85 expected earlier. Adjusted free cash flow is expected to be around $400 million, up from the earlier projection of nearly $350 million.
Moreover, earnings estimate revisions have greatest impact on stock prices. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal fourth-quarter earnings moved up 58.2% in the past month. Further, the company’s earnings for fiscal 2020 are currently pegged at $6.82 per share, which suggests year-over-year growth of 52.6%.
Zacks Rank & Other Key Picks
Scotts Miracle-Gro currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space include Golden Star Resources Ltd. , Eldorado Gold Corporation (EGO - Free Report) and Yamana Gold Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Golden Star Resources has an expected earnings growth rate of 12.5% for 2020. The company’s shares have surged 63.4% in the past year.
Eldorado Gold has an expected earnings growth rate of 2,225% for 2020. Its shares have returned 33.1% in the past year.
Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 84.8% in the past year.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Shares of The Scotts Miracle-Gro Company (SMG - Free Report) scaled a fresh 52-week high of $171.19 on Aug 20, before closing the session at $170.60.
The company has a market cap of around $9.5 billion. Average volume of shares traded in the past three months was around 412K.
The stock has rallied 56.6% in the past year against the industry’s 8.4% decline.
What’s Driving SMG?
Solid fiscal third-quarter performance, upbeat view and bright prospects in the Hawthorne unit are major factors driving the company’s shares.
Scotts Miracle-Gro’s adjusted earnings per share (EPS) rose 22% year over year in third-quarter fiscal 2020 (ended Jun 27, 2020) to $3.80. The figure beat the Zacks Consensus Estimate of $3.35.
Also, net sales rose 27.6% year over year to $1,492.7 million and beat the consensus mark of $1,323.6 million.
In July, the company revised its sales growth outlook for fiscal 2020.
In the U.S. Consumer unit, the company projects sales growth of 20-22% for the fiscal compared with 9-11% expected earlier. It now expects sales in the Hawthorne segment to rise 55-60% in fiscal 2020 compared with the previous expectation of 45-50%.
Based on these assumptions, Scotts Miracle-Gro now projects adjusted EPS between $6.65 and $6.85 compared with $5.65-$5.85 expected earlier. Adjusted free cash flow is expected to be around $400 million, up from the earlier projection of nearly $350 million.
Moreover, earnings estimate revisions have greatest impact on stock prices. The Zacks Consensus Estimate for Scotts Miracle-Gro’s fiscal fourth-quarter earnings moved up 58.2% in the past month. Further, the company’s earnings for fiscal 2020 are currently pegged at $6.82 per share, which suggests year-over-year growth of 52.6%.
Zacks Rank & Other Key Picks
Scotts Miracle-Gro currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space include Golden Star Resources Ltd. , Eldorado Gold Corporation (EGO - Free Report) and Yamana Gold Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Golden Star Resources has an expected earnings growth rate of 12.5% for 2020. The company’s shares have surged 63.4% in the past year.
Eldorado Gold has an expected earnings growth rate of 2,225% for 2020. Its shares have returned 33.1% in the past year.
Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 84.8% in the past year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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