Scotts Miracle-Gro (SMG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Scotts Miracle-Gro (SMG) closed at $100.53, marking a -1.01% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.05%.
Coming into today, shares of the lawn and garden products company had lost 2.05% in the past month. In that same time, the Basic Materials sector lost 0.82%, while the S&P 500 gained 1.32%.
SMG will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.25, up 10.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for SMG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.24% higher. SMG is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SMG is holding a Forward P/E ratio of 20.24. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.24.
It is also worth noting that SMG currently has a PEG ratio of 2.05. 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. SMG's industry had an average PEG ratio of 2.35 as of yesterday's close.
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.
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