We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Scotts Miracle-Gro Up 10% in 3 Months: What's Driving it?
Read MoreHide Full Article
Shares of The Scotts Miracle-Gro Company (SMG - Free Report) have gained 10.3% in the past three months. The stock has also outperformed the industry’s rise of 1.8% over the same time frame.
The company has a market cap of around $6.23 billion. Average volume of shares traded in the past three months was nearly 375.1K. The company also has long-term expected earnings per share (EPS) growth rate of 9.9%.
Let’s discuss the factors that are driving the stock.
Driving Factors
Upbeat fiscal 2020 view and healthy growth prospects of the Hawthorne business are contributing to the company’s share price appreciation.
For fiscal 2020, Scotts Miracle-Gro expects company-wide sales growth in the range of 4-6%. The company expects Hawthorne’s sales to grow 12-15% and U.S. Consumer sales to increase 1-3%. Moreover, adjusted EPS for fiscal 2020 are expected in the range $4.95-$5.15, which indicates a rise from $4.47 recorded in fiscal 2019.
Scotts Miracle-Gro is benefiting from the synergies of the Sunlight Supply acquisition. The buyout provides the company with modern and cost-efficient supply chain in the hydroponic industry. Also, net sales in the Hawthorne segment surged 95% in fiscal 2019 that was partly driven by the impact of the Sunlight Supply buyout. The acquisition is expected to continue driving Hawthorne’s sales in fiscal 2020.
Scotts Miracle-Gro is also poised to benefit from its new line of organic plant food and growing media products — Miracle-Gro Performance Organics. Performance Organics generated sales of nearly $40 million in fiscal 2019. Moreover, it led to a 6% rise in the consumer purchases of the company’s branded soils. The company expects the momentum to continue in fiscal 2020.
The Scotts Miracle-Gro Company Price and Consensus
Daqo New Energy has projected earnings growth rate of 326.3% for 2020. The company’s shares have surged 77.1% in the past year.
Royal Gold has an estimated earnings growth rate of 83.5% for fiscal 2020. Its shares have returned 37.7% in the past year.
Commercial Metals has an expected earnings growth rate of 17.3% for fiscal 2020. The company’s shares have rallied 30.1% 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 2020.
Image: Bigstock
Scotts Miracle-Gro Up 10% in 3 Months: What's Driving it?
Shares of The Scotts Miracle-Gro Company (SMG - Free Report) have gained 10.3% in the past three months. The stock has also outperformed the industry’s rise of 1.8% over the same time frame.
The company has a market cap of around $6.23 billion. Average volume of shares traded in the past three months was nearly 375.1K. The company also has long-term expected earnings per share (EPS) growth rate of 9.9%.
Let’s discuss the factors that are driving the stock.
Driving Factors
Upbeat fiscal 2020 view and healthy growth prospects of the Hawthorne business are contributing to the company’s share price appreciation.
For fiscal 2020, Scotts Miracle-Gro expects company-wide sales growth in the range of 4-6%. The company expects Hawthorne’s sales to grow 12-15% and U.S. Consumer sales to increase 1-3%. Moreover, adjusted EPS for fiscal 2020 are expected in the range $4.95-$5.15, which indicates a rise from $4.47 recorded in fiscal 2019.
Scotts Miracle-Gro is benefiting from the synergies of the Sunlight Supply acquisition. The buyout provides the company with modern and cost-efficient supply chain in the hydroponic industry. Also, net sales in the Hawthorne segment surged 95% in fiscal 2019 that was partly driven by the impact of the Sunlight Supply buyout. The acquisition is expected to continue driving Hawthorne’s sales in fiscal 2020.
Scotts Miracle-Gro is also poised to benefit from its new line of organic plant food and growing media products — Miracle-Gro Performance Organics. Performance Organics generated sales of nearly $40 million in fiscal 2019. Moreover, it led to a 6% rise in the consumer purchases of the company’s branded soils. The company expects the momentum to continue in fiscal 2020.
The Scotts Miracle-Gro Company Price and Consensus
The Scotts Miracle-Gro Company price-consensus-chart | The Scotts Miracle-Gro Company Quote
Zacks Rank & Key Picks
Scotts Miracle-Gro currently carries a Zacks Rank #3 (Hold).
Few better-ranked stocks in the basic materials space are Daqo New Energy Corp (DQ - Free Report) , Royal Gold, Inc (RGLD - Free Report) and Commercial Metals Company (CMC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy has projected earnings growth rate of 326.3% for 2020. The company’s shares have surged 77.1% in the past year.
Royal Gold has an estimated earnings growth rate of 83.5% for fiscal 2020. Its shares have returned 37.7% in the past year.
Commercial Metals has an expected earnings growth rate of 17.3% for fiscal 2020. The company’s shares have rallied 30.1% 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 2020.
Click here for the 6 trades >>