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Mosaic (MOS) Gains As Market Dips: What You Should Know

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Mosaic (MOS - Free Report) closed at $40.50 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.

Prior to today's trading, shares of the fertilizer maker had gained 16.59% over the past month. This has outpaced the Basic Materials sector's gain of 5.87% and the S&P 500's gain of 5.76% in that time.

Wall Street will be looking for positivity from Mosaic as it approaches its next earnings report date. On that day, Mosaic is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 247.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.84 billion, up 56.13% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Mosaic. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9% higher. Mosaic currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Mosaic currently has a Forward P/E ratio of 4.72. This represents a discount compared to its industry's average Forward P/E of 8.52.

It is also worth noting that MOS currently has a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Fertilizers stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MOS in the coming trading sessions, be sure to utilize Zacks.com.


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