uploads///SMG YTD Performence versus Benchmark

What 2017 Holds for Scotts Miracle-Gro: The Marijuana Stock?


Dec. 7 2016, Updated 5:29 p.m. ET

SMG’s performance

The Scotts Miracle-Gro Company (SMG) primarily serves customers in the United States and Europe, with the United States being its key market. The company, which was started to help consumers grow better lawns, sells lawn and garden products for growth and maintenance.

Lately, the stock has been seen as a dependable marijuana stock, given marijuana’s legalization for medical and recreational purposes in some of the United States.

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Performance so far

On December 5, 2016, Scotts Miracle-Gro was trading at $91 per share, a 41.2% rise YTD (year-to-date). The company’s performance has beaten the performances of the benchmark SPDR S&P 500 ETF (SPY) and the iShares US Basic Materials ETF (IYM), which have risen 7.9% and 20%, respectively, YTD.

In 2016, Scotts Miracle-Gro’s total sales have risen 4%. Its US Consumer segment has risen 2%, its Europe Consumer segment has fallen 10%, and its Other segment has risen 33% year-over-year. You can read our 4Q16 and 2016 coverage on the company in Volatility Impacted Scotts Miracle-Gro in 4Q16.

SMG’s peer Central Garden (CENT) has risen an impressive 144% YTD. Spectrum Brands Holdings (SPB) has risen 13.6% YTD. Agrium (AGU), which retails fertilizers in the United States, has also risen.

Series overview

In this series, we’ll look at Wall Street analysts’ next four quarters’ worth of expectations for Scotts Miracle-Gro. We’ll cover estimates for financial metrics and compare the company’s forward valuation multiple with its peers’. We’ll conclude this series by discussing analysts’ forward-12-month recommendations and price targets for the stock.


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