With the weather -- and the markets -- continuing to warm up, is now the right time to buy garden supplier Scotts Miracle-Gro (SMG). According to Jim Cramer, yes.
The company said last month that profits climbed 33% in second-quarter profit as consumers looked to spruce up their yards and grow their own produce to save money.
Last week the company also announced it will pay a dividend of 13 cents a share to investors.
While there was some negativity surrounding the company's earnings call from analysts who expected an estimate boost, Jim Cramer said during Mad Money on Tuesday that the stock is headed much higher.Cramer had Chairman and CEO Jim Hagedorn on the show, who said that shipments to retailer are up 45% in May and sales are strong. Overall, the gardening sector is strengthening. Competitor Central Garden & Pet (CENTA) saw its second-quarter earnings grow over 60% and recorded a 40% boost in its gardening operations. Shares of Central Garden & Pet are also recovering from its 52-week lows of $2.01, closing at $9.00 on Tuesday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV