Why Scotts Miracle-Gro (SMG) is a Top Momentum Stock for the Long-Term

Scotts Miracle-Gro (SMG) is highlighted as a compelling momentum stock, currently holding a Zacks Rank of #3 (Hold) but boasting a VGM Score of A. Shares have risen 13.1% in the past four weeks, supported by a Momentum Style Score of A and upward earnings estimate revisions, with the fiscal year 2025 consensus increasing by $0.02 to $3.42 per share; SMG also has an average earnings surprise of 8.6%.

Analysis

Scotts Miracle-Gro (SMG) presents a noteworthy case for investors, currently holding a Zacks Rank of #3 (Hold) while displaying robust momentum characteristics, underscored by a Momentum Style Score of A and an overall VGM Score of A. This momentum is evidenced by a 13.1% appreciation in its share price over the past four weeks. Further supporting a positive outlook, three analysts have revised their earnings estimates for fiscal 2025 upwards within the last 60 days, resulting in the Zacks Consensus Estimate for that period increasing by $0.02 to $3.42 per share. Additionally, SMG has demonstrated a consistent ability to surpass earnings expectations, boasting an average earnings surprise of 8.6%. The combination of a top-tier Momentum Score and positive earnings estimate revisions, despite the neutral overall Zacks Rank, suggests underlying fundamental strength and positions SMG as a stock of interest, particularly for those tracking momentum trends within the Consumer Staples sector.

Key Decisions for Investors

• Investors with a momentum-oriented investment strategy should take note of SMG's A-rated Momentum and VGM Scores, its recent 13.1% share price increase, and the upward revisions to its fiscal 2025 earnings estimates.
• Given the current Zacks Rank #3 (Hold), close monitoring of subsequent earnings estimate revisions and any changes to the Zacks Rank will be crucial for assessing SMG's ongoing investment thesis and potential for share price appreciation.
• While the overall Zacks Rank is neutral, the strong Style Scores (A for Momentum and VGM) align with Zacks' guidance for identifying potential upside in #3 (Hold) ranked stocks, suggesting that existing shareholders with a momentum focus may find justification for maintaining their positions.