Scotts Miracle-Gro (SMG) — Poised for a Healthy Recovery as Margins Improve
Scotts Miracle-Gro (SMG) may finally be turning the corner after a difficult stretch, and the timing looks right for investors to take another look. The stock trades around $56, but Stifel just upgraded it to Buy with a $70 price target — suggesting roughly 25% upside from current levels — citing improving efficiency and margin strength following the company’s latest earnings report.
In its fiscal fourth quarter, Scotts reported an adjusted loss of $1.96 per share, slightly better than expectations, but the more important takeaway was what management had to say about the year ahead. Fiscal 2026 guidance came in stronger than anticipated, with earnings expected to rise to $4.26 per share, reflecting not only a stabilization in its core business but a more disciplined approach to costs and cash flow.
After a multi-year stretch of pressure in home improvement and consumer lawn care, Scotts appears to be entering a more productive phase. The company is regaining its ability to target inefficiencies, manage shipments more strategically, and unlock savings that were previously out of reach during the post-pandemic slowdown. Stifel’s analysts noted that SMG’s performance “validates the company’s leading position and the category’s resilience,” especially as major retailers continue to rely heavily on the brand.
With margins expanding, leverage coming down, and renewed confidence from both management and Wall Street, Scotts Miracle-Gro is looking less like a turnaround story and more like a recovery already underway. For investors seeking exposure to consumer staples with a catalyst in place, this could be a smart buy while shares still trade at a discount to peers.
