Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Company and Industry Summary - Subscribers gain access to a model account with over 50 stocks, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1]

Core Insights - The cannabis industry is evolving with increasing legalization in the U.S., and ancillary cannabis companies are emerging as attractive investment opportunities due to fewer regulatory hurdles compared to plant-touching operators [1] Group 1: GrowGeneration Corp. (GRWG) - GrowGeneration Corp. is a leading ancillary cannabis company specializing in hydroponic and organic gardening products for cannabis cultivators, operating over twenty retail and distribution locations across major markets like California, Colorado, and Florida [2] - The company has focused on restructuring and margin improvement, showing stabilizing revenue and improved gross margins due to a higher mix of proprietary brands, while also reducing operating expenses [3] - GrowGeneration reported positive adjusted EBITDA recently, marking a significant milestone, and maintains a strong cash position with minimal debt, providing flexibility during industry downturns [3] Group 2: Hydrofarm Holdings Group, Inc. (HYFM) - Hydrofarm Holdings Group manufactures and distributes hydroponic equipment for commercial growers, with a strong presence in West Coast cannabis markets and a broad product portfolio [6] - The company has faced challenges due to industry oversupply, leading to revenue declines and increased losses, but is focusing on restructuring initiatives to stabilize operations [8] - Despite weaker demand, Hydrofarm's brands retain loyalty among professional cultivators, and its diversification into indoor food production markets provides some revenue insulation [8] Group 3: The Scotts Miracle-Gro Company (SMG) - The Scotts Miracle-Gro Company, known for lawn and garden products, has a division called Hawthorne Gardening that supplies hydroponic growers with essential cultivation technology [9] - While Hawthorne's sales have declined due to slowed cultivation, Scotts remains profitable and cash-generative, supported by its core lawn and garden products [10] - The company generates strong free cash flow and has publicly supported cannabis reform initiatives, which could benefit Hawthorne if federal policies shift favorably [10]

Core Viewpoint - Scotts Miracle-Gro Company will release its first quarter financial results on January 28, 2026, and will host a video presentation followed by a Q&A session [1]. Group 1: Financial Results Announcement - The financial results will be released prior to the opening of the U.S. financial markets on January 28, 2026 [1]. - A video presentation will take place at 9:00 a.m. ET to discuss the financial results [1]. - An audio question-and-answer session will follow the video presentation [1]. Group 2: Company Overview - Scotts Miracle-Gro Company is the leading marketer of branded consumer lawn and garden products in North America, with approximately $3.4 billion in sales [3]. - The company's brands, including Scotts®, Miracle-Gro®, Ortho®, and Tomcat®, are market leaders in their respective categories [3]. - For more information, the company’s website is www.scottsmiraclegro.com [3].

Group 1 - Scotts Miracle-Gro (SMG) is currently ranked 15 in the Zacks Sector Rank among 180 companies in the Consumer Staples group [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, gives Scotts Miracle-Gro a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [3] - Over the past three months, the Zacks Consensus Estimate for SMG's full-year earnings has increased by 0.8%, reflecting stronger analyst sentiment [4] Group 2 - Scotts Miracle-Gro has returned approximately 9.9% year-to-date, significantly outperforming the Consumer Staples sector average return of 2.1% [4] - Scotts Miracle-Gro belongs to the Agriculture - Operations industry, which has gained an average of 9.8% this year, indicating better performance compared to its industry peers [6] - In contrast, United Natural Foods (UNFI), another Consumer Staples stock, has increased by 4.6% year-to-date, with a Zacks Rank of 1 (Strong Buy) [5]

Group 1 - Scotts Miracle-Gro Company (NYSE: SMG) is recognized as a strong investment opportunity in the fertilizer sector, with a Buy rating reaffirmed by William Blair analyst Jon Andersen based on the company's promising 2026 guidance [1] - The company anticipates consumer sales growth in the low single digits, which is expected to enhance gross margins and maintain a leverage ratio in the 3s, with achievable projections and potential for further gross margin improvements [2] - Analysts project that Scotts Miracle-Gro will achieve an EBITDA of $700 million by 2028, driven by sales growth of 2%-3% and an EBITDA margin of 20% [2] Group 2 - The company supports President Trump's executive order to reschedule cannabis from a Schedule 1 to Schedule III drug, which is expected to bolster the regulated cannabis industry and contribute approximately $100 billion to the economy [3] - The rescheduling is anticipated to benefit Scotts Miracle-Gro's subsidiary, Hawthorne Gardening Company, which supplies products to legal cannabis operations, despite previous declines in capital spending from cannabis companies [4] - Scotts Miracle-Gro is a leading manufacturer and marketer of branded consumer products for lawn and garden care, including fertilizers, pesticides, seeds, and hydroponic growing supplies [5]

Scotts Miracle-Gro (SMG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a c ...

Core Viewpoint - The reclassification of marijuana by President Trump as a Schedule III drug opens up significant opportunities for the cannabis industry, particularly for companies like Scott's Miracle Grow and its Hawthorne subsidiary, which provides cannabis growing supplies [1][4][6]. Company Developments - Scott's Miracle Grow plans to combine its Hawthorne subsidiary with a dedicated pure-play cannabis company next year, indicating a strategic shift to capitalize on the evolving cannabis market [2][12]. - The CEO of Scott's Miracle Grow, Jim Hagadorn, expressed enthusiasm about the executive order, highlighting the culmination of a decade-long effort to achieve this change [3][4]. Industry Implications - The reclassification allows for increased medical research on cannabis, which was previously restricted under Schedule I classification, thus potentially leading to new medical applications and benefits [4][6]. - Legal cannabis businesses can now benefit from a reduced federal tax rate of 21%, down from an 80% rate, which was previously punitive and hindered profitability [6][7]. - The change is expected to help legitimate markets thrive while reducing the influence of illicit operators and protecting children [7][8]. Market Reactions - Following the announcement, there was initial stock price volatility, with some stocks experiencing a spike before settling down, indicating a "sell on the news" reaction from investors [11].

Core Viewpoint - The Scotts Miracle-Gro Company supports President Trump's executive order to reschedule cannabis from a Schedule I to Schedule III drug, which is seen as a necessary step for research and the legal cannabis industry [1][2]. Group 1: Impact of Rescheduling - Rescheduling cannabis is expected to strengthen the financial viability of the legal cannabis industry, which employs over 425,000 people and contributes $100 billion to the economy [2]. - The change will help combat the illicit cannabis market by making legal operations more competitive [2]. - Rescheduling will remove the 280E tax penalty that currently imposes tax rates of 70% or higher on cannabis companies, aligning them with the general corporate tax rate of 21% [2][3]. Group 2: Implications for Scotts Miracle-Gro - The rescheduling is anticipated to enhance profitability for legal cannabis companies, allowing them to invest more in capital and growth opportunities, which could benefit ScottsMiracle-Gro's Hawthorne Gardening Company subsidiary [3]. - Hawthorne has experienced a decline in capital spending from cannabis companies due to financial struggles, and increased investments could positively impact its business [3]. - The company plans to strategically transition Hawthorne into a cannabis-focused entity, expecting to combine it with a cannabis company in early fiscal 2026, which will create greater growth opportunities [4]. Group 3: Cannabis Classification - Cannabis, currently classified as a Schedule I drug alongside heroin, will be reclassified to Schedule III, placing it with drugs that have accepted medical uses and lower potential for physical dependence [5].

Core Viewpoint - The Scotts Miracle-Gro Company supports President Trump's executive order to reschedule cannabis from a Schedule I to Schedule III drug, which is seen as a significant step for the cannabis industry and its growth strategy [1][2]. Group 1: Impact of Rescheduling on the Cannabis Industry - Rescheduling cannabis is viewed as overdue, with 39 states having already legalized it in some form, reflecting public sentiment and enabling necessary medical research [2]. - The change is expected to weaken the illicit cannabis market by enhancing the financial viability of the legal industry, which employs over 425,000 people and contributes $100 billion to the economy [2]. - Rescheduling will not legalize cannabis federally but will alleviate financial constraints on cannabis companies, facilitating medical research on its use for conditions like PTSD and cancer [2][3]. Group 2: Financial Implications for Cannabis Companies - The current 280E tax penalty has severely impacted the profitability of legal cannabis companies, often leading to their closure; rescheduling will eliminate this penalty, aligning their tax rates with other American businesses [3]. - This change is anticipated to allow cannabis companies to invest more in capital and growth opportunities, which could positively affect ScottsMiracle-Gro's subsidiary, Hawthorne Gardening Company [3]. Group 3: Strategic Moves by Scotts Miracle-Gro - The company plans to strategically transition Hawthorne into a cannabis-focused entity, aiming to combine it with a cannabis company in early fiscal 2026, enhancing growth opportunities [4]. - The reclassification of cannabis is expected to make Hawthorne a more appealing partner for cannabis-dedicated companies [4]. Group 4: Classification of Cannabis - Cannabis, currently classified as a Schedule I drug alongside heroin, will move to Schedule III, aligning it with drugs that have accepted medical uses and lower potential for physical dependence [5]. Group 5: Company Overview - Scotts Miracle-Gro is the leading marketer of branded consumer lawn and garden products in North America, with approximately $3.4 billion in sales and well-known brands like Scotts®, Miracle-Gro®, Ortho®, and Tomcat® [6].

Core Insights - Scotts Miracle-Gro is recognized as the leader in the consumer lawn and garden sector [2] - The company also has a hydroponics business that it is planning to divest [2] Company Overview - Scotts Miracle-Gro is a prominent player in the consumer lawn and garden market [2] - The company is currently exploring divestiture options for its hydroponics segment [2]