We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mosaic (MOS) Stock Up 46% in a Year: What's Driving It?
Read MoreHide Full Article
Shares of The Mosaic Company (MOS - Free Report) have rallied around 46% over a year. The company has also outperformed its industry’s growth of roughly 29.6% over the same time frame.
Mosaic, a Zacks Rank #2 (Buy) stock, has a market cap of roughly $11.4 billion. Average volume of shares traded in the last three months was around 3,887.7K. Mosaic has an expected long-term earnings per share growth rate of 7%.
Let’s take a look into the factors that are driving this fertilizer company.
What’s Driving MOS?
Strong earnings outlook, healthy demand trends for nutrients, higher fertilizer prices and buoyant prospects from the Vale Fertilizantes acquisition are contributing to the rally in Mosaic’s shares.
Mosaic, earlier this month, raised its 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.
Mosaic is seeing higher fertilizer prices, which contributed to strong growth in its top line in second-quarter 2018. The company’s revenues rose roughly 26% year over year to $2,205 million in the quarter. Higher average realized sales prices also helped the company to achieve double-digit sales growth across its Phosphates and Potash segments in the second quarter. Mosaic expects to continue to gain from higher prices in the third quarter.
Mosaic is also strongly positioned to leverage the rising global demand for fertilizers. In particular, the company is seeing strong demand for nutrients in India, a major import market. Mosaic expects market conditions to improve and anticipates demand for phosphate and potash to continue rising in 2018. It envisions 2018 to be another record year for global shipments of both nutrients.
Moreover, the buyout of Vale Fertilizantes business makes Mosaic one of the leading fertilizer manufacturing and distribution companies in Brazil. The acquisition has allowed the company to capitalize on the rapidly growing Brazilian agricultural market. The acquisition is expected to be accretive to Mosaic's earnings per share in 2018 and the company expects to realize around $100 million in synergies from the buyout this year.
Other top-ranked stocks worth considering in the basic materials space include Celanese Corporation (CE - Free Report) , Huntsman Corporation (HUN - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 18% in a year. 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% and a Zacks Rank #1. The company’s shares have rallied around 22% in a year.
Air Products has an expected long-term earnings growth rate of 16.2% and carries a Zacks Rank #2. Its shares have gained roughly 14% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Mosaic (MOS) Stock Up 46% in a Year: What's Driving It?
Shares of The Mosaic Company (MOS - Free Report) have rallied around 46% over a year. The company has also outperformed its industry’s growth of roughly 29.6% over the same time frame.
Mosaic, a Zacks Rank #2 (Buy) stock, has a market cap of roughly $11.4 billion. Average volume of shares traded in the last three months was around 3,887.7K. Mosaic has an expected long-term earnings per share growth rate of 7%.
Let’s take a look into the factors that are driving this fertilizer company.
What’s Driving MOS?
Strong earnings outlook, healthy demand trends for nutrients, higher fertilizer prices and buoyant prospects from the Vale Fertilizantes acquisition are contributing to the rally in Mosaic’s shares.
Mosaic, earlier this month, raised its 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.
Mosaic is seeing higher fertilizer prices, which contributed to strong growth in its top line in second-quarter 2018. The company’s revenues rose roughly 26% year over year to $2,205 million in the quarter. Higher average realized sales prices also helped the company to achieve double-digit sales growth across its Phosphates and Potash segments in the second quarter. Mosaic expects to continue to gain from higher prices in the third quarter.
Mosaic is also strongly positioned to leverage the rising global demand for fertilizers. In particular, the company is seeing strong demand for nutrients in India, a major import market. Mosaic expects market conditions to improve and anticipates demand for phosphate and potash to continue rising in 2018. It envisions 2018 to be another record year for global shipments of both nutrients.
Moreover, the buyout of Vale Fertilizantes business makes Mosaic one of the leading fertilizer manufacturing and distribution companies in Brazil. The acquisition has allowed the company to capitalize on the rapidly growing Brazilian agricultural market. The acquisition is expected to be accretive to Mosaic's earnings per share in 2018 and the company expects to realize around $100 million in synergies from the buyout this year.
The Mosaic Company Price and Consensus
The Mosaic Company Price and Consensus | The Mosaic Company Quote
Other Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Celanese Corporation (CE - Free Report) , Huntsman Corporation (HUN - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained around 18% in a year. 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% and a Zacks Rank #1. The company’s shares have rallied around 22% in a year.
Air Products has an expected long-term earnings growth rate of 16.2% and carries a Zacks Rank #2. Its shares have gained roughly 14% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>