About Scotts Miracle-Gro
In the previous parts of this series, we’ve looked at agribusiness companies that primarily serve commercial markets. Scotts Miracle-Gro (SMG) mainly serves the retail lawn and garden market with a heavy concentration in North America. SMG is expected to report its earnings on January 31, 2017.
As of January 23, 2017, two of the ten analysts surveyed recommend a “strong buy” for Scotts Miracle-Gro, and three recommend a “buy.” Five analysts have a “hold” recommendation for the company, and none of them recommend a “sell” or “strong sell” over the next 12 months.
As of January 23, 2017, the consensus next 12-month price target for SMG is $97.30 per share. That day, the company closed 2.6% below that price target, at $94.70 per share. The company’s stock price has mostly been above analysts’ price target over the past eight years, which may indicate that the market was more optimistic than analysts.
Scotts Miracle-Gro has many brands that are easily recognized, and the company can command a premium for their products. That’s unlike the volatility in the commodity business, which can significantly impact the profitability for companies such as PotashCorp (POT), Agrium (AGU), and CF Industries (CF), which primarily deal in fertilizers (MOO).
To learn more about Scotts Miracle-Gro, be sure to read The Scotts Miracle-Gro Company: What’s Its Secret?
For more information on the agricultural fertilizer industry, you can visit our Agricultural Fertilizers page.