Scotts Miracle-Gro stock surging ahead of MJ legalization votes

Scotts Miracle-Gro remains a Wall Street darling, thanks to its recent investments in businesses and products that serve cannabis cultivators.

Scotts has watched its stock rocket about 30% this year ahead of an important election year for the marijuana industry, Bloomberg News reported.

The Ohio-based lawn care company’s stock first surged past $80 per share in early August and has been trading just above that since then. It reached new highs on Monday when it hit $84.19, surpassed $86 on Wednesday and broke yet another record Thursday by hitting $86.27 before closing the day at $85.59.

Scotts’ August stock surge started after it announced it had paid $40 million to acquire Botanicare, an Arizona-based provider of marijuana nutrient and hydroponics products.

Earlier this year, Scotts bought Gavita, a European company that specializes in grow lighting and hardware; last year, Scotts invested $135 million in two California businesses that sell fertilizer, soil and other gardening accessories to cannabis cultivators.

The company’s hydroponics business now generates about $250 million of revenue a year, according to Bloomberg. Most of Scotts’ canna-centric products are sold through specialty shops, but its Black Magic brand of soil for indoor growing is available in 165 Home Depot stores, according to Bloomberg.