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Mosaic (MOS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Mosaic (MOS - Free Report) closed at $46.29, marking a +1.56% move from the previous day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.24%.

Prior to today's trading, shares of the fertilizer maker had gained 4.52% over the past month. This has outpaced the Basic Materials sector's loss of 0.33% and the S&P 500's loss of 4.02% in that time.

Investors will be hoping for strength from Mosaic as it approaches its next earnings release, which is expected to be February 22, 2022. The company is expected to report EPS of $1.95, up 242.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.81 billion, up 55.07% from the year-ago period.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 3.25% higher. Mosaic is currently a Zacks Rank #2 (Buy).

Investors should also note Mosaic's current valuation metrics, including its Forward P/E ratio of 5.19. This valuation marks a discount compared to its industry's average Forward P/E of 7.87.

Meanwhile, MOS's PEG ratio is currently 0.74. 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. MOS's industry had an average PEG ratio of 0.84 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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