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Mosaic (MOS) Shares Pop 78% in 6 Months: What's Driving It?

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The Mosaic Company's (MOS - Free Report) shares have shot up 78.2% over the past six months. The company has also outperformed its industry’s rise of 54.5% over the same time frame. Moreover, it has topped the S&P 500’s roughly 3.9% decline over the same period.

Let’s take a look into the factors behind this Zacks Rank #1 (Strong Buy) stock’s price appreciation.

 

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What’s Aiding MOS?

Mosaic is benefiting from strong demand and prices 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. Demand for grains and oilseeds remains high along with strong farm economics. Strong demand, low inventories and supply disruptions have also fueled rapid price increases for fertilizers in the United States and globally. Demand for phosphate and potash in Brazil is also expected to remain firm on healthy farm economics.

The phosphate market is benefiting from higher global demand and tight availability. Demand for potash is also expected to remain strong in 2022. Strong grower economics and crop commodity prices are driving potash demand and prices globally.

Mosaic, 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.

The company 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.

Earnings estimates for Mosaic have also been going up over the past two months. Over the past month, the Zacks Consensus Estimate for 2022 has increased 32.7%. The consensus estimate for first-quarter 2022 has also been revised 14.1% upward over the same time frame.

 

 

Stocks to Consider

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 108.7% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 37.4% 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 missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 95% 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 53.1% 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 69% in a year.

Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 35.1% upward over the past 60 days.

Commercial Metals 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 13.7%, on average. CMC has gained around 43% in a year.


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