Scotts (SMG) Surges 10.9%: Is This an Indication of Further Gains?

Company Overview - Scotts Miracle-Gro (SMG) shares increased by 10.9% to close at $65.01, with notable trading volume exceeding typical levels [1] - The stock has gained 8.9% over the past four weeks, reflecting positive market sentiment [1] Performance and Guidance - The share price rally was driven by the company's reaffirmation of its fiscal 2025 guidance and strong performance during the peak lawn and garden season [2] - Robust consumer demand and strong point-of-sale (POS) trends have reinforced investor confidence in the company's growth trajectory [2] Earnings Expectations - Scotts is expected to report quarterly earnings of $2.17 per share, representing a year-over-year decline of 6.1% [3] - Revenue is anticipated to be $1.23 billion, reflecting a 2.7% increase from the same quarter last year [3] - The consensus EPS estimate has been revised marginally higher over the last 30 days, indicating a positive trend that typically correlates with price appreciation [4] Industry Context - Scotts operates within the Zacks Agriculture - Operations industry, where another company, Archer Daniels Midland (ADM), experienced a 0.6% decline in its stock price [4] - ADM's consensus EPS estimate has decreased by 6.9% over the past month, indicating challenges within the industry [5]