Is Scotts Miracle-Gro a Buy?
If you are watching the meltdown of marijuana grower Tilray (NASDAQ: TLRY), you might be worrying that the excitement over pot stocks has crested. But even if that's true, it doesn't necessarily change the long-term growth potential of the sector. It may just mean that investors are getting more cautious about how they approach the burgeoning niche, which is where industry supplier Scotts Miracle-Gro (NYSE: SMG) comes in. Here's what you need to know about this company's foray into marijuana and whether or not it's worth buying.
For a very long time, Scotts was a boring company that sold lawn care products. That's a fairly stable business that grows slowly over time. Sure, it's seasonal, since lawns don't need much tending in the winter. Unusually hot or cold summers can cause temporary top- and bottom-line fluctuations. And every so often a new product comes out that's a big hit. But overall, not much happens in the lawn care sector.
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Source Fool.com
