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Is Mosaic (MOS) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Mosaic (MOS - Free Report) . MOS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.92, which compares to its industry's average of 17.49. Over the last 12 months, MOS's Forward P/E has been as high as 26.62 and as low as 13.92, with a median of 16.87.

Another notable valuation metric for MOS is its P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.80. Over the past 12 months, MOS's P/B has been as high as 1.25 and as low as 0.72, with a median of 0.99.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MOS has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.44.

Value investors will likely look at more than just these metrics, but the above data helps show that Mosaic is likely undervalued currently. And when considering the strength of its earnings outlook, MOS sticks out at as one of the market's strongest value stocks.


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