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Why You Should Add Mosaic (MOS) Stock to Your Portfolio
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The Mosaic Company’s (MOS - Free Report) shares have shot up 72% over the past three months. It is benefiting from higher prices and demand for phosphate and potash.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Mosaic currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper into the factors that make this fertilizer maker an attractive choice for investors right now.
An Outperformer
Shares of Mosaic have rallied 119.9% over a year against 64.4% rise of its industry. It has also outperformed the S&P 500’s 14% rise over the same period.
Image Source: Zacks Investment Research
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for Mosaic for 2022 has increased around 33.3%. The consensus estimate for first-quarter 2022 has also been revised 21.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Mosaic is currently pegged at $11.34, indicating year-over-year growth of 125%. Earnings are also expected to register a 317.5% growth in the first quarter of 2022.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Mosaic is 18.4%, above the industry’s level of 16.8%.
Attractive Valuation
Valuation looks attractive as Mosaic’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizer stocks, Mosaic is currently trading at trailing 12-month EV/EBITDA multiple of 7.76, cheaper than the industry average of 8.43.
Growth Drivers in Place
Mosaic is benefiting from higher prices and demand for phosphate and potash. Higher agricultural commodity prices and attractive farm economics are driving demand for fertilizers globally. Farmer economics remain attractive in most global growing regions on strong crop demand, affordable inputs, and favorable weather. Strong demand, low inventories and supply disruptions have also fueled rapid price increases for fertilizers in the United States and globally.
Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics and higher crop prices.
The company, on its fourth-quarter call, noted that it expects strong agricultural commodity pricing trends to continue driving demand for fertilizers through 2022. It expects phosphate demand to remain strong globally.
Mosaic is also taking actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability. Transformational savings are also expected to drive margins in its Mosaic Fertilizantes segment.
Some other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 100.5% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 93% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 64.9% for the current year. ASIX's consensus estimate for current-year earnings has been revised 58% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 112% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 82.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 62.8% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 51% in a year.
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Why You Should Add Mosaic (MOS) Stock to Your Portfolio
The Mosaic Company’s (MOS - Free Report) shares have shot up 72% over the past three months. It is benefiting from higher prices and demand for phosphate and potash.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Mosaic currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s delve deeper into the factors that make this fertilizer maker an attractive choice for investors right now.
An Outperformer
Shares of Mosaic have rallied 119.9% over a year against 64.4% rise of its industry. It has also outperformed the S&P 500’s 14% rise over the same period.
Image Source: Zacks Investment Research
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for Mosaic for 2022 has increased around 33.3%. The consensus estimate for first-quarter 2022 has also been revised 21.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Mosaic is currently pegged at $11.34, indicating year-over-year growth of 125%. Earnings are also expected to register a 317.5% growth in the first quarter of 2022.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Mosaic is 18.4%, above the industry’s level of 16.8%.
Attractive Valuation
Valuation looks attractive as Mosaic’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizer stocks, Mosaic is currently trading at trailing 12-month EV/EBITDA multiple of 7.76, cheaper than the industry average of 8.43.
Growth Drivers in Place
Mosaic is benefiting from higher prices and demand for phosphate and potash. Higher agricultural commodity prices and attractive farm economics are driving demand for fertilizers globally. Farmer economics remain attractive in most global growing regions on strong crop demand, affordable inputs, and favorable weather. Strong demand, low inventories and supply disruptions have also fueled rapid price increases for fertilizers in the United States and globally.
Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics and higher crop prices.
The company, on its fourth-quarter call, noted that it expects strong agricultural commodity pricing trends to continue driving demand for fertilizers through 2022. It expects phosphate demand to remain strong globally.
Mosaic is also taking actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability. Transformational savings are also expected to drive margins in its Mosaic Fertilizantes segment.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Other Stocks to Consider
Some other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 100.5% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 93% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 64.9% for the current year. ASIX's consensus estimate for current-year earnings has been revised 58% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 112% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 82.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 62.8% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has gained around 51% in a year.