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

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In the latest trading session, Mosaic (MOS - Free Report) closed at $49.28, marking a +1.11% move from the previous day. This move outpaced the S&P 500's daily loss of 2.01%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Coming into today, shares of the fertilizer maker had lost 18.56% in the past month. In that same time, the Basic Materials sector lost 15.03%, while the S&P 500 lost 6.08%.

Mosaic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Mosaic to post earnings of $3.94 per share. This would mark year-over-year growth of 236.75%. Our most recent consensus estimate is calling for quarterly revenue of $5.64 billion, up 101.25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.60 per share and revenue of $21.53 billion. These totals would mark changes of +169.84% and +74.25%, respectively, from last year.

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. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.68% higher. Mosaic currently has a Zacks Rank of #3 (Hold).

Investors should also note Mosaic's current valuation metrics, including its Forward P/E ratio of 3.59. For comparison, its industry has an average Forward P/E of 4.89, which means Mosaic is trading at a discount to the group.

Also, we should mention that MOS has a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MOS's industry had an average PEG ratio of 0.58 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.

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


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