Earnings RecoverySMG shares have dramatically undervalued the robust near-term earnings recovery and advantaged long-term growth profile stemming from the U.S. Consumer business's unmatched position of strength.
Raw Material CostsScotts is expected to benefit from lower raw material costs, which should help improve its financial performance.
Tariff And Labor RiskSMG has and will continue to attain agricultural exemptions, suggesting limited tariff risk for the U.S. Consumer business.
ValuationThe current valuation offers an attractive risk/reward, with the current level already considering a poor season that would delay but not deny the robust earnings recovery outlook.