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The Scotts Miracle-Gro Company (NYSE:SMG) was one of the stocks on Jim Cramer’s radar as he highlighted AI winners to buy for 2026. During the lightning round, a caller asked about the stock, and Cramer replied:

You know, it’s too risky. I will use their natural and organic this year. My problem is, is that it is, if the weather’s no good, they do bad, and my tomatoes rot.

A stock market chart. Photo by Arturo A on Pexels

The Scotts Miracle-Gro Company (NYSE:SMG) sells lawn and garden care items, including fertilizers, grass seeds, and hydroponic systems. In addition, the company provides pest and weed control products. Ariel Investments stated the following regarding The Scotts Miracle-Gro Company (NYSE:SMG) in its Q1 2026 investor letter:

Also during the quarter, we initiated a position in Scotts Miracle Gro (NYSE:SMG), a market leader in the U.S. lawn and garden industry. The company benefits from iconic brands, deep retail partnerships, and a dominant distribution network, which together provide durable competitive advantages. The steady, recurring nature of the lawn and garden category supports our confidence in the company’s ability to de-leverage over time. Assuming improved stewardship following past missteps, we believe SMG has the potential to become an enduring, Ariel-like franchise and a compelling long-term investment.

While we acknowledge the potential of SMG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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