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In a remarkable display of market resilience, Scotts Miracle-Gro Company (NYSE:SMG) stock has reached a 52-week high, touching $88.38 amidst a period of robust growth. This peak represents a significant turnaround for the lawn and garden care giant, which has seen its stock value surge by an impressive 79.56% over the past year. Investors have shown increased confidence in the company's performance and future prospects, propelling the stock to new heights and reflecting a strong recovery from any previous lows experienced within the year. The 52-week high milestone is a testament to Scotts Miracle-Gro's strategic initiatives and its ability to navigate a dynamic market landscape.
In other recent news, Scotts Miracle-Gro announced a strong performance for the third quarter of 2024. The company's U.S. Consumer lawn and garden business saw an 11% increase in net sales, hitting the $1 billion mark, while their Hawthorne Division experienced a 6% rise in branded sales and a 144% increase in profit. The company is on track for a 5% to 7% net sales growth for the fiscal year, and expects an adjusted EBITDA of $530 million to $540 million.
Scotts Miracle-Gro plans to generate $1 billion in free cash flow by fiscal year-end, reduce debt by $350 million, and achieve above 30% adjusted gross margins within the next three years. In addition to these financial goals, the company announced additional investments of $25 million in its brands. Martha Stewart has been appointed to a new advisory role as the Honorary Chief Gardening Officer for 2025.
Despite the strong Q3 results, the company faced challenges such as weather conditions, pricing, and consumer confidence which affected overall performance. However, executives expressed optimism for Q4 based on improved product responses and pricing plans. They also reiterated their commitment to achieving a 250 basis point margin recovery in 2024. These are the recent developments in Scotts Miracle-Gro's financial performance.
InvestingPro Insights
Scotts Miracle-Gro's recent stock performance aligns with several key insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with InvestingPro data showing it at 99.6% of its peak. This corroborates the article's mention of the stock reaching $88.38, a new 52-week high.
InvestingPro Tips highlight that SMG has shown a "Strong return over the last month" and a "Strong return over the last three months," with data indicating impressive returns of 25.84% and 42.83% respectively. These figures underscore the article's point about the company's robust growth and market resilience.
Additionally, an InvestingPro Tip notes that SMG "Has maintained dividend payments for 20 consecutive years," which may contribute to investor confidence mentioned in the article. The current dividend yield stands at 3.01%, potentially adding to the stock's attractiveness.
It's worth noting that InvestingPro offers 12 additional tips for Scotts Miracle-Gro, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those looking to understand the factors behind SMG's recent stock performance and its potential future trajectory.
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