|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||100.70 - 102.71|
|52 Week Range||57.96 - 114.63|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||15.40|
|Earnings Date||Nov 6, 2019|
|Forward Dividend & Yield||2.32 (2.28%)|
|1y Target Est||111.00|
Is The Scotts Miracle-Gro Company (NYSE:SMG) a good dividend stock? How can we tell? Dividend paying companies with...
Despite growing sales and wider legalization, many pot stocks have been insanely volatile as Wall Street and investors try to wrap their heads around the marijuana industry. So should you think about buying "cheap" Aurora Cannabis (ACB) Stock before Q4 earnings?
The Zacks Analyst Blog Highlights: FTI, Keysight, NewMarket, Pilgrim's Pride and The Scotts Miracle-Gro
Since Canada enacted nation-wide legalization of marijuana in October 2018, cannabis companies have been the hot new thing in stock investing. But sometimes, that hot new thing isn’t always hot. The cannabis sector has seen a sharp decline in recent months. Major players, like Canopy Growth (CGC) and Aurora Cannabis (ACB), are down by a third or more since the spring. The reasons are varied – licensing bottlenecks in Health Canada, supply and distribution difficulties in a new market, management turnover at Canopy – but the result is clear: the big cannabis companies are not delivering results so far.But there is still money to be made in the cannabis industry. The product is in demand; the problems the big suppliers face are more in the nature of growing pains. So, to profit, investors will benefit by thinking outside of the grow house. We’ve dipped into TipRanks’ stock database and found three companies that are thriving as service providers for the cannabis industry. Innovative Industrial Properties (IIPR)This company is a Real Estate Investment Trust (REIT), focused on the cannabis industry. Innovative buys and manages industrial properties which it then leases to cannabis growers. It’s a profitable model, and the company’s Q2 earnings result bear that out. IIRP reported gains of 155% in both revenues and net income, with the former coming in at $8.28 million and the latter at $3.07 million. EPS, at 30 cents, was up 76%.According to Exec. Chairman Alan Gold, IIPR has operations in 26 states, with over 2 million square feet leased long-term to cannabis growers. The average remaining lease term is over 15 years, and the properties have a current blended yield of 14.6%. CEO Paul Smithers noted that industry analysts see plenty of momentum in cannabis. In his comments on the earnings, he quoted sources projecting “a 35% increase in US regulated cannabis sales from 2018 to 2019, and reaching nearly $30 billion by 2023.” The current operations, and the prospects for near-term growth, provide IIPR with both a solid foundation and an upbeat outlook.In an added boon for investors, IIPR has been paying out a quarterly dividend over the past two years, with regular increases in the disbursement. The current yield is 2.16%, and the payment is $1.80 annualized. The July quarterly payment of 60 cents per share marked a 140% increase year-over-year.Right now, IIPR has one analyst rating, from James Sullivan of BTIG. Sullivan, a 4-star analyst, leads the REIT research team at BTIG. He gives IIPR a $151 price target, suggesting an impressive 81% upside. It’s a clear sign of confidence in the real estate aspect of the cannabis industry. Scotts Miracle-Gro Company (SMG)Land is important, but cannabis industry relies on increasing production and multiple harvests per year to maximize revenue. This requires greenhouses and other controlled growing facilities – letting the plants grow wild outdoors simply won’t cut it. And greenhouses are where Scotts Miracle-Gro comes in.The company may be best known for its Miracle-Gro weed killer and other home gardening products, but its Hawthorne subsidiary is deeply involved in the cannabis industry. Where IIPR provides the real estate needed by the growers, Scotts provides the hydroponic and lighting systems necessary for large-scale indoor cultivation of cannabis. In fact, the company’s annual sales growth of hydroponic systems has outpaced that of traditional lawn and garden gear for the last three years. In a 2016 interview, CEO Jim Hagedorn laid out a vision of marijuana ancillary products as the future of his company: “We’re doing it. It’s beyond stopping. And we’re not getting into pot growing. We’re talking dirt, fertilizer, pesticides, growing systems, lights. You know it’s a multibillion-dollar business...”Hagedorn’s bullish stand on cannabis has borne fruit. SMG’s fiscal Q3 earnings, reported at the end of July, showed a 14% positive surprise – EPS came in at $3.11 against a forecast of $2.71. The Q3 earnings were up 16% from the year-ago quarter. Shares in SMG are up 76% year-to-date.Despite the strong earnings and the increasing sales in grow supplies, the most recent analyst takes on SMG are exact opposites. Merrill Lynch’s Christopher Carey gives the stock a Sell rating, and a low price target of $96. He bases his stance on the declining outlook in cannabis stocks over the last two quarters.5-star analyst William Chappell, of SunTrust Robinson, sees a better future for SMG. He gives the stock a Buy rating, raised his price target by 20%, to $120. He writes, “The continued profitability progression in the Hawthorne segment is an important factor for the stock in quarters to come.” Chappell’s price target suggests a 10% upside to SMG stock.Shares in SMG are selling for $108.50, just above the $108 average target. SMG is up 5.6% since its July 31 Q3 earnings report. KushCo Holdings, Inc. (KSHB)Land and growing facilities aren’t the only support services that the cannabis industry needs. Containers, packaging, and vaporizer products are essential for the medical cannabis segment, for shipping the product and for customer use. KushCo fills this need for the industry.Supporting the cannabis industry has been lucrative. KushCo reported record earnings in its fiscal Q3, of $41.5 million. On the down side, the company is operating at a loss, and reported a net loss per share of 12 cents. This was an improvement of 2 cents per share from the year-ago quarter. As a mitigating factor to the earnings loss, KushCo reported $21.2 million in available cash in May, a gain of $7.7 million since the start of the company’s fiscal year.Wall Street’s analysts were generally pleased by KSHB’s quarterly performance. Benchmark analyst Mike Hickey saw fit to initiate coverage of the stock with a Buy rating and a $7 price target, suggesting an upside of 83%.Writing from Northland Securities, analyst Greg Gibas gave a clear reason for optimism in KSHB: “We believe KSHB will continue to benefit from growing & deepening its customer relationships while also cross-selling throughout its customer base as the company continues to power the global cannabis ecosystem.” His $8 target implies a high upside of 109%. Scott Fortune, of Ross Capital, also gave the stock an $8 target, and added, “The company reaffirmed its $150M FY19 annual revenue target with an emphasis on doubling revenues next quarter and new states being added to its list. Canada's cannabis 2.0 is also expected to come online in 4Q19 and contribute meaningfully to its top line.”These three reviews give KSHB its consensus rating of Strong Buy. The average price target, $7.67, suggests an upside potential of 100% from the current share price of $3.82.Visit TipRanks’ Top Stocks page, and find the most recommended stocks from Wall Street’s best analysts.
The U.S. economy is likely to maintain its long-term growth albeit at a slow pace. Several stimulus measures across the globe will also help the U.S. economy to remain stable.
These two pick-and-shovel cannabis stocks offer investors less volatile options for profitng from the legal marijuana industry.
Better-than-expected Q3 results, upbeat view as well as bright prospects in the Hawthorne unit are driving Scotts Miracle-Gro's (SMG) shares.
When most people think of marijuana stocks, the last thing they think of is dividends. The legal marijuana industry is still very young, and new companies in growing industries need money to expand. Furthermore, U.S. investors in the marijuana space tend to currently focus on a handful of Canadian companies which have enjoyed the opportunity to list on U.S. exchanges.
For some investors, mid-cap stocks are a perfect hunting ground for stocks to buy. Small-cap stocks offer more volatility -- and generally have underperformed in this bull market. Large-cap stocks often have so much coverage that finding a real buying opportunity is difficult.So mid-cap stocks -- defined here as those with a market capitalization between $2 billion and $10 billion -- offer a nice balance. The companies are large enough to own significant market share, and provide steady performance. They can be small enough to, on occasion, dip below the market's radar. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Among the 1,000-plus mid-cap stocks on U.S. markets, these 10 look like potentially the best stocks to buy. They span different industries -- and have very different risk/reward profiles. But all 10, at the least, have a strong bull case.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray (TLRY)Source: Jarretera / Shutterstock.com To be clear, marijuana producer Tilray (NASDAQ:TLRY) is not for the faint of heart. It may not even be a buy just yet, as the chart of TLRY stock is a classic falling knife.This, after all, is a stock that looked like a bubble less than a year ago. TLRY stock went from $20 to $300 in a matter of weeks. Since then, shares have done nothing but fall.That crazy trading likely colors Tilray stock in the mind of some investors. And with cannabis sentiment clearly negative, particularly among the larger names, it continues to be the victim of a steady sell-off. A Q2 report this month that investors took as disappointing certainly didn't help.But as I wrote after earnings, there's actually an interesting strategic play here. Tilray is staying patient, focusing on cannabis derivatives instead of producing flower whose price it believes will eventually crater. Given plunging prices in legalized U.S. markets like Oregon and Colorado, that strategy makes some sense.Again, the chart here is ugly, and patience might be advised. Investors skeptical of cannabis growth should look elsewhere. But even investors intrigued by the space seem to see Tilray as some sort of fly-by-night pump stock after last year's bubble. It's not. And at some point, TLRY stock will bottom -- and could see a nice rebound. CyberArk Software (CYBR)Source: photobyphm / Shutterstock.com There aren't a lot of growth stocks to buy in the mid-cap stocks space at the moment. Some of the best stories in recent years -- think Shopify (NYSE:SHOP), Roku (NASDAQ:ROKU), or The Trade Desk (NASDAQ:TTD) -- have been discovered, and their market caps have moved above $10 billion.Meanwhile, with many markets 'winner take most', those growth stories that aren't the best stories simply may not be attractive. A software stock, for instance, that is second or third in its market usually isn't a true growth stock.But CyberArk Software (NASDAQ:CYBR) seems like an exception. As Will Healy detailed in January, CyberArk has a solid niche in the growing cybersecurity space. Revenue growth of 21% in 2017 accelerated to 31% last year, and CyberArk is guiding for a 22-23% increase this year on top of that strong comparison.At 43x 2020 EPS estimates, CYBR stock isn't necessarily cheap. But that figure drops below 40x backing out the company's $13 per share in cash. And a recent 23% pullback from late July highs makes the price more attractive. That decline came in part due to Q2 earnings earlier this month -- yet the report looked strong, with a guidance hike. * 7 Stocks to Buy Down 10% in the Past Week That selloff comes in a market where investors still see growth plays as stocks to buy almost no matter the valuation. If CYBR gets that treatment again, the upside from current levels could be enormous. Columbia Sportswear (COLM)Source: Ekaterina_Minaeva / Shutterstock.com There also aren't a lot of 'set it and forget it' consumer plays in the mid-cap space -- or the market at all. Retailers, save for the biggest companies, have been hammered. Suppliers face risk as well, as fragmented markets mean smaller companies can take share.But through that noise, Columbia Sportswear (NASDAQ:COLM) just keeps performing. Columbia is coming off a second quarter report in July where it crushed earnings estimates and raised full-year guidance. Yet it trades at just 18x the midpoint of that guidance, backing out net cash.This indeed seems like a 'set it and forget it' play. It's well-managed. The Columbia brand has real value. The need for outdoor wear is unlikely to decline. And the combination of a reasonable valuation and strong growth provides a compelling entry point below $100. JetBlue Airways (JBLU)Source: Roman Tiraspolsky / Shutterstock.com Airline stocks like JetBlue Airways (NASDAQ:JBLU) can be difficult investments. Warren Buffett of Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) famously ignored the space for years before entering the sector in 2016.Buffett's prior logic was that airlines had too much cyclical exposure, capital needs that were too intensive, and too often went bankrupt. Those worries still cloud the space: most airline stocks, including JBLU, are quite cheap on an earnings basis as investors discount the impact of a potentially looming recession.So anyone even considering an airline stock has to have some faith in the U.S. macro picture. But as far as the sector goes, JBLU looks like the best choice. It has the lowest international exposure -- and thus the biggest reliance on an American economy that is leading the world at the moment. As an analyst noted this week, its costs are under control, and its valuation on a P/E basis is well below historical averages. * 7 Tech Industry Dividend Stocks for Growth and Income To be sure, JBLU stock probably will always look cheap. And it's traded sideways for years now. But at the low end of that range, and at just 7x 2020 EPS estimates, JetBlue stock might finally be too cheap. HD Supply (HDS)Source: Jonathan Weiss / Shutterstock.com Industrial distributors like HD Supply (NYSE:HDS), too, are being discounted for cyclical reasons. But even in that context, HDS stock looks too cheap.HDS trades at less than 11x the midpoint of FY19 EPS guidance. Admittedly, the company did cut that outlook after Q2 results, with weather and some one-time issues a factor. But this is a company still growing revenue at a sharp clip, with sales guided to increase roughly 7% this year.In other words, HD Supply is growing in line with other plays like Fastenal (NASDAQ:FAST) or MSM Industrial Direct (NYSE:MSM) -- yet it's valued at a discount. Here, too, investors bullish on the U.S. economy have an attractive option at a reasonable valuation. Scotts Miracle-Gro (SMG)Source: Casimiro PT / Shutterstock.com There are two big worries with Scotts Miracle-Gro (NYSE:SMG). The first is that the easy money has been made. The second is that it looked the way before, too -- and SMG stock promptly plunged.Indeed, SMG stock soared to an all-time high in 2017 on the back of cannabis optimism. Two acquisitions had positioned the company to be a key supplier to the industry.But execution was lacking. Scotts Miracle-Gro's CEO even held an expletive-laden conference call to express his frustration with the marijuana-facing Hawthorne unit.Since then, however, Scotts Miracle-Gro seems back on track. And the stock reflects that: SMG shares have risen 74% so far this year. Some of that increase is coming from better execution. But some might be coming from increasing optimism that a stronger Hawthorne unit can better benefit from cannabis growth in Canada and the U.S. * 7 Things to Know About the History of Overstock and Patrick Byrne And that is a risk, particularly with SMG trading at 24x the midpoint of FY19 earnings guidance. But there also are huge growth opportunities here, both in the cannabis space and in the traditional lawn care category. If Scotts can take advantage of those opportunities, the stock can move higher. And recent performance suggests that it will. Mohawk Industries (MHK)Source: IgorGolovniov / Shutterstock.com Shares of Mohawk Industries (NYSE:MHK) just bounced off a six-year low - and perhaps for good reason.The company's own CEO called the environment "difficult" in the company's Q2 release in July. Luxury vinyl tile (LVT) is an opportunity for Mohawk -- but also a challenge, as it cannibalizes existing sales in ceramic and porcelain tile.But there's a case to buy the dip here. Mohawk isn't terribly leveraged, with debt-to-EBITDA under 2x even after disappointing first-half results. P/E is under 11x. LVT start-up costs are hitting earnings now - but that category should at some point should turn from a headwind to earnings to a tailwind.In an environment where housing-related stocks have rallied after an ugly 2018, MHK has been left out. That should reverse -- if the company can capitalize on the LVT opportunity. Penn National Gaming (PENN) and Boyd Gaming (BYD)Source: Shutterstock U.S. gaming stocks like Penn National Gaming (NASDAQ:PENN) and Boyd Gaming (NYSE:BYD) have taken a reasonably big hit so far in 2019 -- despite what seems like good news.The U.S. economy remains strong. Earnings are still growing. The legalization of sports betting isn't quite the boost to profits that some investors might think -- as executives at both companies have pointed out -- but it still should drive higher visitation and provide help to hotel and food & beverage revenue.And yet, shares of domestic casino operators keep falling. PENN shares touched a two-year low in August. BYD is down 40% from early February highs.Here, too, investors need to trust the macro environment. Casino stocks are notoriously cyclical -- and that goes double for Penn National, who has leased most of its properties to REIT Gaming & Leisure Properties (NASDAQ:GLPI). * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off But high risk also implies high reward - and both stocks can soar. Valuation, in terms of both P/E and EV/EBITDA, is cheap. Demand remains strong. Competition from new U.S. states is likely to be minimal, with no new major markets on the horizon. Both companies can pay down debt and, in the case of Boyd, pay dividends as well. There's a lot to like -- if the external environment cooperates. American Eagle Outfitters (AEO)Source: Helen89 / Shutterstock.com The case against a mall-based retailer like American Eagle Outfitters (NYSE:AEO) is easy to make. Mall traffic continues to decline. The shift to 'omnichannel retailing' may work for the likes of Walmart (NYSE:WMT) and Target (NYSE:TGT), for smaller subscale specialty retailers simply results in lower margins and smaller earnings.But American Eagle isn't your standard mall retailer. The legacy nameplate continues to drive positive same-store sales and solid online growth, a combination few of its rivals can match. Meanwhile, its aerie unit continues to take market share from L Brands (NYSE:LB) unit Victoria's Secret.There's not much reason to see either of trends ending any time soon. American Eagle's denim business is benefiting from a resurgence in that category. Weakness at rival Abercrombie & Fitch (NYSE:ANF) and Aeropostale suggests market share gains should continue. Aerie continues to post double-digit growth in same-store sales. Its positioning as an 'honest', body-positive brand against Victoria's Secret's 'angels' should continue to drive even more market share capture.And yet, AEO stock has been dragged by a market selling anything related to malls -- including operators like Simon Property Group (NYSE:SPG) and Macerich (NYSE:MAC). While there's some logic to the bearish sentiment, American Eagle has proven itself to be an outlier. At less than 10x forward earnings, and with a 3.2% dividend yield, it's not being treated as such. When that changes -- and it should -- AEO stock will prove to be one of the best stocks to buy out there.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now The post 10 Mid-Cap Stocks to Buy appeared first on InvestorPlace.
Stock pickers are generally looking for stocks that will outperform the broader market. Buying under-rated businesses...
It wasn’t so long ago that publicly traded companies shied away from investing in the nascent marijuana industry, even as California and Colorado began the legalization trend. James Boyd, education coach at TD Ameritrade, pointed out some Canadian publicly traded cannabis-related companies now have dual listings on the New York Stock Exchange™ and Nasdaq™. The big news stories around the industry center on consuming companies, such as the 2018 news that beer and spirits maker Constellation Brands Inc (NYSE: STZ) increased its investment in Canadian medical-cannabis producer Canopy Growth Corp (NYSE: CGC) to 38%.
Strong Q3 results, upward estimate revision and upbeat outlook makes Scotts Miracle-Gro (SMG) an appropriate investment option at the moment.
Canopy Growth joins a recent slate of cannabis companies that are disappointing investors. The manager of the first "pure-play" cannabis ETF on the NYSE explains why the industry is coming up short.
Scotts Miracle-Gro (SMG) stock surged 14% in July. After SMG reported stellar Q3 earnings on July 31, its stock rose 8.6% after the results.