The Scotts Miracle-Gro Company (SMG - Free Report) stock looks promising at the moment based on compelling growth prospects for fiscal 2019. The company’s shares have gained around 22% over the past six months.
Scotts Miracle-Gro currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve into the factors that make Scotts Miracle-Gro stock an attractive investment option at the moment.
Upbeat View
In July 2019, Scotts Miracle-Gro raised its guidance for fiscal 2019 for the second time.
The company now expects adjusted earnings per share (EPS) in the band of $4.35-$4.50 compared with $4.20-$4.40 expected earlier. Per the company, revised guidance for company-wide sales growth of 16-17% assumes that sales in the Hawthorne unit will increase around 90% year over year to $650 million in fiscal 2019. The U.S. Consumer segment is expected to grow 6-7%.
Acquisitions and Hawthorne to Drive Growth
The company will gain from the synergies of the Sunlight Supply acquisition. The buyout provides it with modern and cost-efficient supply chain in the hydroponic industry that will benefit its retail and end consumers.
Moreover, the integration of Sunlight Supply is on track. The company continues to expect nearly $30 million in synergies from the transaction by the end of fiscal 2019.
Scotts Miracle-Gro is witnessing strong growth in the Hawthorne segment. Sales in the segment surged nearly 138% in the fiscal third quarter, mainly driven by the acquisition of Sunlight Supply. Scotts Miracle-Gro is expected to benefit from long-term prospects and cost-saving opportunities associated with the Hawthorne division.
An Outperformer
Scotts Miracle-Gro has significantly outperformed the industry it belongs to year to date. The company’s shares have rallied 65.7% against the 0.5% decline of the industry. The company has also outpaced the S&P 500’s rise of 7.2% for the same period.
Estimates Moving Up
Earnings estimate revisions have the greatest impact on stock prices. Estimates for fiscal 2019 for Scotts Miracle-Gro have moved up 3.9% in the past three months. The Zacks Consensus Estimate for earnings for the fiscal is currently pegged at $4.50 per share, which indicates an expected year-over-year rise of around 21.4%.
Other Key Picks
Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Royal Gold, Inc (RGLD - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1.
Kinross has an expected earnings growth rate of 170% for 2019. The company’s shares have surged 60.7% in the past year.
Royal Gold has a projected earnings growth rate of 82.1% for fiscal 2020. The company’s shares have rallied 58.6% in a year’s time.
Agnico Eagle has an estimated earnings growth rate of 158.6% for the current year. Its shares have moved up 38.5% in the past year.
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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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The Scotts Miracle-Gro Company (SMG - Free Report) stock looks promising at the moment based on compelling growth prospects for fiscal 2019. The company’s shares have gained around 22% over the past six months.
Scotts Miracle-Gro currently sports a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let's delve into the factors that make Scotts Miracle-Gro stock an attractive investment option at the moment.
Upbeat View
In July 2019, Scotts Miracle-Gro raised its guidance for fiscal 2019 for the second time.
The company now expects adjusted earnings per share (EPS) in the band of $4.35-$4.50 compared with $4.20-$4.40 expected earlier. Per the company, revised guidance for company-wide sales growth of 16-17% assumes that sales in the Hawthorne unit will increase around 90% year over year to $650 million in fiscal 2019. The U.S. Consumer segment is expected to grow 6-7%.
Acquisitions and Hawthorne to Drive Growth
The company will gain from the synergies of the Sunlight Supply acquisition. The buyout provides it with modern and cost-efficient supply chain in the hydroponic industry that will benefit its retail and end consumers.
Moreover, the integration of Sunlight Supply is on track. The company continues to expect nearly $30 million in synergies from the transaction by the end of fiscal 2019.
Scotts Miracle-Gro is witnessing strong growth in the Hawthorne segment. Sales in the segment surged nearly 138% in the fiscal third quarter, mainly driven by the acquisition of Sunlight Supply. Scotts Miracle-Gro is expected to benefit from long-term prospects and cost-saving opportunities associated with the Hawthorne division.
An Outperformer
Scotts Miracle-Gro has significantly outperformed the industry it belongs to year to date. The company’s shares have rallied 65.7% against the 0.5% decline of the industry. The company has also outpaced the S&P 500’s rise of 7.2% for the same period.
Estimates Moving Up
Earnings estimate revisions have the greatest impact on stock prices. Estimates for fiscal 2019 for Scotts Miracle-Gro have moved up 3.9% in the past three months. The Zacks Consensus Estimate for earnings for the fiscal is currently pegged at $4.50 per share, which indicates an expected year-over-year rise of around 21.4%.
Other Key Picks
Some other top-ranked stocks in the basic materials space are Kinross Gold Corporation (KGC - Free Report) , Royal Gold, Inc (RGLD - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1.
Kinross has an expected earnings growth rate of 170% for 2019. The company’s shares have surged 60.7% in the past year.
Royal Gold has a projected earnings growth rate of 82.1% for fiscal 2020. The company’s shares have rallied 58.6% in a year’s time.
Agnico Eagle has an estimated earnings growth rate of 158.6% for the current year. Its shares have moved up 38.5% in the past year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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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