Does This Mid Cap Stock Look Solid For Gains-SMG

Acrobull Canada Advisory Inc.

February 24			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
The Scotts Miracle-Gro Company	NYSE-SMG	Basic Materials		$3.475 Billion	Medium

The Scotts Miracle-Gro Company and its subsidiaries manufacture, market, and sell lawn, garden care, indoor, and hydroponic gardening products in the United States and around the world.

Recent Highlights

ScottsMiracle-Gro Appoints Nick Miaritis to Board of Directors- The Scotts Miracle-Gro Company (NYSE: SMG), the world’s leading marketer of branded consumer lawn and garden as well as indoor and hydroponic growing products, today announced that Nick Miaritis has been named to its Board of Directors.

Miaritis is chief client officer at VaynerMedia, a global creative and media agency, where he leads brand partnerships, accelerates growth opportunities and develops new capabilities. With a passion for crafting culturally relevant content for Fortune 500 brands, he infuses every project with his unique creative vision and strategic edge. Since joining VaynerMedia, he has created leading campaigns, such as Duracell’s “I Buy My Own Batteries” and Planters “Death of Mr. Peanut.

First Quarter Financial Highlights

For the quarter ended December 28, 2024, total Company sales of $416.8 million were up slightly from prior year sales of $410.4 million. Due to the seasonal nature of the business, the first quarter typically represents less than 15 percent of full-year sales. U.S.

Consumer net sales increased 11 percent, to $340.9 million from $306.7 million in the same period last year, driven by a strong fall season across all categories and early retailer load-in for the spring season. Hawthorne segment sales decreased 35 percent, to $52.1 million, compared to $80.1 million last year. The decline was expected due to Hawthorne’s strategic exit from third-party distribution as of April 1, 2024.

GAAP and non-GAAP adjusted gross margin rates for the quarter were 22.7 percent and 24.0 percent, respectively, which compared to 15.2 percent and 13.7 percent, respectively, in the prior year. The improvements were primarily attributable to lower material costs, favorable fixed-cost leverage, lower distribution costs following fiscal 2024 warehouse closures, and improved product mix related to Hawthorne’s transition from selling third-party products.

Stock Observation- The company has reported good financial results in the first quarter, the company is expected to report better financial results in the next quarter. The RSI level for the stock is at 27 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$60.46 USD
Acrobull Recommendation	Buy
Target Price	Target $68.25 USD
RSI Level	14 Day RSI 27
Total Shares Outstanding	57.47 Million
Shares held by Insiders Risk Factor Stop Loss	25.46% Medium 5%