Peering into Recent Action from The Scotts Miracle-Gro Company (NYSE:SMG)

Moving 1.02% from the previous session and touching $109.47 on a recent trade, shares of The Scotts Miracle-Gro Company (NYSE:SMG) have been on a number of investor watchlists of late. 

After a recent check, shares of The Scotts Miracle-Gro Company (NYSE:SMG) have been seen trading -0.27% off of the 50-day high and 15.23% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 4.35% away from the 20-day moving average and 7.87% off of the 50-day average. If we take a wider approach, shares have been trading 14.78% away from the 200-day moving average.

Over the last year, The Scotts Miracle-Gro Company (NYSE:SMG)’s stock has performed 17.33%. For the last six months, the stock has performed 17.19%. From the start of the calendar year, shares have been 2.32%. Zooming in closer, company stock has been 11.39% for the quarter, 6.63% over the past month, and 3.11% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. The Scotts Miracle-Gro Company (NYSE:SMG) current has a Beta score of 0.38.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  The Scotts Miracle-Gro Company’s EPS is 3.25.  Their EPS should be compared to other companies in the Basic Materials sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  The Scotts Miracle-Gro Company’s  P/E ratio is 33.70. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  The Scotts Miracle-Gro Company’s  PEG is 3.43.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 33.10%.  Calculated by dividing The Scotts Miracle-Gro Company’s annual earnings by its total assets, investors will note a return on assets of 6.70%.  Finally, The Scotts Miracle-Gro Company’s return on investment stands at 15.50% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.30 for The Scotts Miracle-Gro Company (NYSE:SMG).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.