Scotts Miracle-Gro (SMG - Free Report) closed the most recent trading day at $101.44, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 0.73%.
Coming into today, shares of the lawn and garden products company had lost 3.24% in the past month. In that same time, the Basic Materials sector gained 1.8%, while the S&P 500 gained 1.94%.
Wall Street will be looking for positivity from SMG as it approaches its next earnings report date. On that day, SMG is projected to report earnings of -$1.25 per share, which would represent year-over-year growth of 10.07%. Our most recent consensus estimate is calling for quarterly revenue of $347.73 million, up 16.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.02 per share and revenue of $3.30 billion, which would represent changes of +12.3% and +4.46%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SMG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SMG is currently a Zacks Rank #3 (Hold).
Investors should also note SMG's current valuation metrics, including its Forward P/E ratio of 20.56. This valuation marks a premium compared to its industry's average Forward P/E of 20.25.
Investors should also note that SMG has a PEG ratio of 2.08 right now. 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. The Fertilizers was holding an average PEG ratio of 2.46 at yesterday's closing price.
The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.