New Lifetime High Reached: Scotts Miracle Gro (SMG)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Scotts Miracle Gro as such a stock due to the following factors:
- SMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.0 million.
- SMG has traded 16,083 shares today.
- SMG is trading at a new lifetime high.
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More details on SMG:
The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden care products worldwide. The stock currently has a dividend yield of 2.8%. SMG has a PE ratio of 26.4. Currently there are 3 analysts that rate Scotts Miracle Gro a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Scotts Miracle Gro has been 238,000 shares per day over the past 30 days. Scotts Miracle Gro has a market cap of $4.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.03 and a short float of 2.1% with 4.05 days to cover. Shares are up 6% year-to-date as of the close of trading on Monday.
Analysis:
rates Scotts Miracle Gro as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Chemicals industry and the overall market, SCOTTS MIRACLE-GRO CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- SCOTTS MIRACLE-GRO CO's earnings per share declined by 16.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SCOTTS MIRACLE-GRO CO increased its bottom line by earning $2.63 versus $2.53 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $2.63).
- The change in net income from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income has decreased by 13.5% when compared to the same quarter one year ago, dropping from -$65.70 million to -$74.60 million.
- You can view the full Scotts Miracle Gro Ratings Report.
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