With Spring just around the corner, keep an eye on lawn stocks.
That’s because Americans spend billions (between $30 billion and $40 billion) every year on lawn care. In addition, according to Mordor Intelligence, the US lawn care market – currently valued at $61.74 billion could grow to $79.55 billion by 2030.
Look at Scotts Miracle-Gro (SYM: SMG), for example.
Oversold at $55.92, SMG could see near-term upside, according to analysts at Stifel. In fact, the firm just upgraded SMG to a buy with a price target of $78 a share, noting that investors have underestimated SMG’s resiliency.
“We believe the recent underperformance disproportionately overweight’s universal macroeconomic concerns despite SMG boasting key points of differentiation alongside adverse January/February with the latter a headwind, but in relatively inconsequential months,” they said, as quoted by CNBC “We believe the shares dramatically undervalue the robust near-term earnings recovery and advantaged long-term growth profile stemming from the U.S. Consumer business’s unmatched position of strength.”
Even better, while we wait for the stock to recover, we can collect its 4.72% yield. The company also announced a quarterly dividend of 66 cents per share, which is payable on March 7 to shareholders of record as of February 21.
Toro Co. (SYM: TTC)
Oversold shares of Toro are down to $77.42, which is strong support dating back to late September. Also, as we wait for TTFC to recover, we can collect its yield of about 2%. It paid its latest quarterly dividend of 38 cents per share on January 13, 2025.
Helping, analysts at Northland upgraded TTC to outperform, with a price target of $100 a share.
“We are raising our rating to OP and maintaining our $100 price target. We like the risk/reward equation. Our DCF model suggest TTC shares are worth $100, and we think shares have solid support at roughly $80. We also note that investors will receive a 1.9% dividend yield while waiting for shares to appreciate. From a fundamental perspective, we think the golf and construction businesses continue to perform well, and we think the retail business is close to stabilization,” added Northland, as quoted by Street Insider.
