Is the Grass Looking Greener for Scotts Miracle-Gro?

Spring is in the air, conjuring up images of flowers blooming, birds chirping, Opening Day first pitches -- and maybe even fresh, green lawns. Investors in the company behind many of those lush lawns, Scotts Miracle-Gro (NYSE: SMG), are looking forward to a fresh spring start as the stock of the leader in the garden and lawn-care industry is down nearly 50% from its 52-week high.

The decline is largely a result of the market punishing the stock for being a "COVID beneficiary." Additionally, excitement for Hawthorne, Scotts' cannabis supplies business, has dried up as marijuana stocks have struggled over the past year.

But the sell-off seems overdone, and perception that Scotts is simply benefiting from COVID-era trends seems shortsighted. In fact, the company looks well-positioned to deal with the current economic environment since it is a durable industry leader with strong brands and pricing power.

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Source Fool.com