Is Scotts Miracle-Gro Stock a Buy?
Scotts Miracle-Gro (NYSE: SMG) is a lawn care company and a little bit more, having started to sell hydroponic products just a few years ago. That makes it a supplier to the marijuana sector, where hydroponics are a key growing method. Taking on this new business didn't go as smoothly as management might have wanted, but progress started to improve in fiscal 2019. Now, as fiscal 2020 gets under way and the new unit starts to settle into a groove, is Scotts worth buying?
Scotts Miracle-Gro is probably best known for its namesake brands, Scotts and Miracle-Gro. Both are staples in the highly seasonal lawn care market, a slow-growing, boring, and fairly consistent business. A few years ago, though, as marijuana started to become legal in an increasing number of U.S. states and Canada, Scotts decided to expand into a new market: hydroponics. Management believed that pot would end up being a growth sector, while still a business that was very close to the company's core operations. It seemed like a natural fit.
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Source Fool.com
