Scotts (SMG) Upgraded to Buy: Here's Why

Core Insights - Scotts Miracle-Gro (SMG) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][4][9] - The Zacks rating system is driven by changes in earnings estimates, which are crucial for stock price movements, making it a valuable tool for investors [2][3][5] Earnings Estimates - Scotts is projected to earn $4.24 per share for the fiscal year ending September 2026, with no year-over-year change expected [7] - Over the past three months, the Zacks Consensus Estimate for Scotts has increased by 0.8%, reflecting a positive trend in earnings estimates [7] Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6][8] - The upgrade to Zacks Rank 2 places Scotts in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9]