Back to top

Image: Bigstock

Scotts Miracle-Gro (SMG) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Scotts Miracle-Gro (SMG - Free Report) closed the most recent trading day at $98.55, moving -0.1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.

Prior to today's trading, shares of the lawn and garden products company had lost 2.15% over the past month. This has lagged the Basic Materials sector's gain of 1.42% and the S&P 500's gain of 2.66% in that time.

SMG will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. On that day, SMG is projected to report earnings of -$0.89 per share, which would represent a year-over-year decline of 18.67%. Meanwhile, our latest consensus estimate is calling for revenue of $450.62 million, up 3.85% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for SMG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. SMG is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, SMG is currently trading at a Forward P/E ratio of 20.08. For comparison, its industry has an average Forward P/E of 18.6, which means SMG is trading at a premium to the group.

Meanwhile, SMG's PEG ratio is currently 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SMG's industry had an average PEG ratio of 2.52 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Scotts Miracle-Gro Company (SMG) - free report >>

Published in