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Scotts Miracle-Gro Company (SMG - Free Report) shares are up over 37% since being added to the Focus List on April 14, 2009 and 23.3% year-to-date.

This Zacks #2 Rank stock trades at 15.4x the Zacks Consensus Estimate for fiscal 2010 and 13.7x the Zacks Consensus Estimate for fiscal 2011.

These P/E multiples look attractive given Scotts' expected EPS growth of 26.8% in fiscal 2010, 12.8% in fiscal 2011, and 11.0% over the next three to five years.

Company Description

Scotts Miracle-Gro manufactures, markets, and sells lawn and garden care products such as lawn fertilizer, crabgrass control, weed control, and pest control. The company's brands include Scotts, Turf Builder, and Miracle-Gro.

Fiscal First-Quarter Results

Scotts' revenue rose 6% year-over-year. The company's top-line growth was driven by its Global Consumer business, which grew 14%. Scotts lost $0.73 per share, beating the Zacks Consensus Estimate by 9 cents, or 11.0%.

Management reiterated its fiscal year 2010 guidance. It expects revenue growth of 3%-5%, flat gross margins, flat operating expenses, and earnings per share of $3.00-$3.10.

Scotts is scheduled to report fiscal second quarter earnings on May 6.

Estimates Inching Higher

Scotts last reported earnings in early February, and there has little new information regarding the company's sales and earnings in the last several weeks. As such, there have been a limited number of analyst revisions.

In the last month, there have been 5 upward revisions to SMG's annual EPS estimates. The Zacks Consensus Estimate for fiscal 2010 is up one cent to $3.12, while the fiscal 2012 Zacks Consensus Estimate is up 2 cents to $3.52.

Industry Leader

The company has a return on equity of 30.6%, above the industry average of 13.1%. The company's net profit margin of 4.9% is also above the industry average of 3.4%. Scotts Miracle-Gro has a dividend yield of 1.0%, compared the 0% dividend yield of its peers.

The Chart

From September 2009 through February 2010, SMG shares were range bound between $38 and $43. The stock bottomed on February 11 at $37.84 and has climbed over 27% in the last two months. SMG is trading at a 52-week high.

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