New Lifetime High Today: Scotts Miracle Gro (SMG)
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 $15.2 million.
- SMG has traded 56,141 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 24. Currently there are 3 analysts that rate Scotts Miracle Gro a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Scotts Miracle Gro has been 245,200 shares per day over the past 30 days. Scotts Miracle Gro has a market cap of $4.1 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.43 and a short float of 1% with 2.09 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates Scotts Miracle Gro as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its 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 19.1%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SCOTTS MIRACLE-GRO CO has improved earnings per share by 10.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. 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 ($3.50 versus $2.63).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $121.70 million to $133.40 million.
- Net operating cash flow has slightly increased to $672.90 million or 3.69% when compared to the same quarter last year. In addition, SCOTTS MIRACLE-GRO CO has also modestly surpassed the industry average cash flow growth rate of 1.16%.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Scotts Miracle Gro Ratings Report.
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