SMG Springs Higher on Revised Outlook

An unprecedented number of consumers have picked up gardening during coronavirus-related lockdowns

The shares of Scotts Miracle-Gro Co (NYSE: SMG) are up 2.57% at $142.57 this morning, after the company revised its full-year sales and profit outlook amid increased demand for its soil and plant food products. The lawn and garden giantsaid an unprecedented number of consumers have picked up gardening during coronavirus-related lockdowns, and now expects to see a 16%-18% increase in full-year sales growth, more than double its original projections.

As mentioned above, the timeless hobby seems popular during times of social isolation. On the charts, SMG was able to weather its mid-March lows near the $76 level, springing up to an all-time high of $151.03 May 15. Since then, the equity has cooledoff slightly, today running into overhead resistance at the $145 mark. Regardless, SMG is now sporting a 50% year-over-year surplus.

Despite its positive price action, analysts were hesitant toward the equity coming into today, with three of the five in coverage sporting a tepid "hold," and the remaining two carrying a "strong buy." However, optimism is running high in the options pits, where SMG's 50-day call/put volume ratio of 2.84 ranks in the 86th annual percentile at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).