Are you looking to add cannabis to your portfolio but worried about the general volatility of many cannabis stocks? You might want to consider adding Ohio-based Scott’s Miracle-Gro (NYSE:SMG) to your watchlist.
Although the company’s shares lost approximately one-third of their value in 2018, their recent acquisition of Sunlight Supply (by subsidiary Hawthorne for $450 Million) might help drive both top and bottom-line growth for the next few years.
In 2018 Hawthorne was responsible for approximately 13% of SMG overall revenue but as more and more states (and countries) end cannabis prohibition, we expect to see this overall percentage increase.
SMG certainly seems like one of the safest cannabis related stocks as it only relies on cannabis for a small percentage of their business. Should the unforeseen happen to the cannabis industry SMG could always fall back on its core business of consumer and professional horticulture products.
SMG markets branded consumer lawn and garden products in addition to a full range of products for professional horticulture. SMG manufactures and markets plant fertilizers, pest control products, nutrient lines, gardening soils, seed, and other products throughout North America and the EU.
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