Almost a year ago, ScottsMiracle-Gro (SMG) was one of the hottest cannabis stocks, with many investors hoping for windfall gains. However, things didn’t go as they may have liked.
However, it’s worth noting that ScottsMiracle-Gro does not cultivate cannabis like the other companies—it supplies cannabis-growing items such as hydroponic products used for indoor gardening. ScottsMiracle-Gro also missed its targets because it was betting heavily upon California’s market, which has continued to face regulatory delays.
This year, ScottsMiracle-Gro stock has turned around, rising ~57% in the first six months. It beat Canopy Growth, which has risen 42%, and Cronos Group, which has risen 53%. In contrast, Tilray (TLRY) has fallen ~33%.
ScottsMiracle-Gro revised its sales outlook in early June and now expects company-wide sales growth of 13%–14% YoY (year-over-year). Hawthorne, SMG’s cannabis segment, is expected to grow 75%–80% YoY.