Scotts Miracle-Gro: Stabilizing Revenue And Margin Expansion Drive Optimism

(8min)

Summary

  • Scotts Miracle-Gro shows stabilizing revenue, robust margin expansion, and strategic initiatives for long-term growth, making it an appealing investment opportunity.
  • Management focuses on debt reduction, cost savings, and expanding demographic reach, particularly within the Hispanic market, positioning SMG for sustainable growth.
  • The planned spin-off of Hawthorne Gardening simplifies the business, enhancing valuation clarity and focusing on core lawn and garden segments.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »

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CalypsoArt

It’s been a while since I last covered Scotts Miracle-Gro (NYSE:SMG) back in January 2023, highlighting its attractive valuation and turnaround potential in its core segments. While SMG hasn’t produced eye-popping returns over the past 2 years, it’s still

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I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SMG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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