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

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Mosaic (MOS - Free Report) closed at $57.72 in the latest trading session, marking a -0.81% move from the prior day. This move lagged the S&P 500's daily gain of 2.57%. Meanwhile, the Dow gained 2%, and the Nasdaq, a tech-heavy index, added 0.3%.

Heading into today, shares of the fertilizer maker had gained 29.51% over the past month, outpacing the Basic Materials sector's gain of 4.36% and the S&P 500's loss of 7.68% in that time.

Wall Street will be looking for positivity from Mosaic as it approaches its next earnings report date. The company is expected to report EPS of $2.42, up 324.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.13 billion, up 79.66% from the prior-year quarter.

MOS's full-year Zacks Consensus Estimates are calling for earnings of $10.40 per share and revenue of $18.5 billion. These results would represent year-over-year changes of +106.35% and +49.73%, respectively.

It is also important to note the recent changes to analyst estimates for Mosaic. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 18.42% higher. Mosaic is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Mosaic is holding a Forward P/E ratio of 5.59. Its industry sports an average Forward P/E of 8.81, so we one might conclude that Mosaic is trading at a discount comparatively.

Meanwhile, MOS's PEG ratio is currently 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Fertilizers was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 20, 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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