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5 Reasons to Add Mosaic (MOS) Stock to Your Portfolio Now
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We are optimistic about The Mosaic Company’s (MOS - Free Report) prospects and believe that the time is right for you to buy the stock as it holds promise and is will sustain the momentum.
Let’s delve into the factors that make this fertilizer company an attractive choice.
What Makes MOS an Attractive Pick
Solid Rank & VGM Score: Mosaic currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be the appropriate investment proposition at the moment.
Strong Q2 & Upbeat Outlook: Mosaic’s adjusted earnings of 40 cents per share in the second quarter beat the Zacks Consensus Estimate of 39 cents.
The company has raised adjusted earnings per share guidance for 2018 factoring in strong business performance and lower expected effective tax rate for the year. For 2018, the company now expects adjusted earnings in the range of $1.45-$1.80 per share, up from the prior view of $1.20-$1.60.
The company also expects adjusted EBITDA for 2018 in the band of $1.80-$1.95 billion, up from its prior view of $1.70-$1.90 billion.
Estimates Moving North: The Zacks Consensus Estimate for earnings for Mosaic for the third quarter and 2018 has been moving up over the past month. In this period, earnings estimates for the current quarter have moved up 14.5% to 63 cents and the same for 2018 rose 7.9% to $1.63.
Attractive Valuation: Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizers stocks, Mosaic is currently trading at trailing 12-month EV/EBITDA multiple of 8.1, much cheaper compared with the industry average of 14.2.
Price Performance: Mosaic outperformed the industry it belongs to in the past year. The company’s shares have rallied 49.4% compared with roughly 35.6% rise of the industry.
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 24.1% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 72.7% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 18.3% in a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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5 Reasons to Add Mosaic (MOS) Stock to Your Portfolio Now
We are optimistic about The Mosaic Company’s (MOS - Free Report) prospects and believe that the time is right for you to buy the stock as it holds promise and is will sustain the momentum.
Let’s delve into the factors that make this fertilizer company an attractive choice.
What Makes MOS an Attractive Pick
Solid Rank & VGM Score: Mosaic currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be the appropriate investment proposition at the moment.
Strong Q2 & Upbeat Outlook: Mosaic’s adjusted earnings of 40 cents per share in the second quarter beat the Zacks Consensus Estimate of 39 cents.
The company has raised adjusted earnings per share guidance for 2018 factoring in strong business performance and lower expected effective tax rate for the year. For 2018, the company now expects adjusted earnings in the range of $1.45-$1.80 per share, up from the prior view of $1.20-$1.60.
The company also expects adjusted EBITDA for 2018 in the band of $1.80-$1.95 billion, up from its prior view of $1.70-$1.90 billion.
The Mosaic Company Price and Consensus
The Mosaic Company Price and Consensus | The Mosaic Company Quote
Estimates Moving North: The Zacks Consensus Estimate for earnings for Mosaic for the third quarter and 2018 has been moving up over the past month. In this period, earnings estimates for the current quarter have moved up 14.5% to 63 cents and the same for 2018 rose 7.9% to $1.63.
Attractive Valuation: Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizers stocks, Mosaic is currently trading at trailing 12-month EV/EBITDA multiple of 8.1, much cheaper compared with the industry average of 14.2.
Price Performance: Mosaic outperformed the industry it belongs to in the past year. The company’s shares have rallied 49.4% compared with roughly 35.6% rise of the industry.
Other Stocks to Consider
A few other top-ranked stocks in the basic materials space are Huntsman Corporation (HUN - Free Report) , Ingevity Corporation (NGVT - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 24.1% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 72.7% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 18.3% in a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>