Investors interested in Fertilizers stocks are likely familiar with Mosaic (MOS - Free Report) and CF Industries (CF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Mosaic is sporting a Zacks Rank of #1 (Strong Buy), while CF Industries has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that MOS likely has seen a stronger improvement to its earnings outlook than CF has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MOS currently has a forward P/E ratio of 14.16, while CF has a forward P/E of 24.92. We also note that MOS has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CF currently has a PEG ratio of 4.15.
Another notable valuation metric for MOS is its P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CF has a P/B of 1.93.
These are just a few of the metrics contributing to MOS's Value grade of B and CF's Value grade of C.
MOS has seen stronger estimate revision activity and sports more attractive valuation metrics than CF, so it seems like value investors will conclude that MOS is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors interested in Fertilizers stocks are likely familiar with Mosaic (MOS - Free Report) and CF Industries (CF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Mosaic is sporting a Zacks Rank of #1 (Strong Buy), while CF Industries has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that MOS likely has seen a stronger improvement to its earnings outlook than CF has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MOS currently has a forward P/E ratio of 14.16, while CF has a forward P/E of 24.92. We also note that MOS has a PEG ratio of 2.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CF currently has a PEG ratio of 4.15.
Another notable valuation metric for MOS is its P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CF has a P/B of 1.93.
These are just a few of the metrics contributing to MOS's Value grade of B and CF's Value grade of C.
MOS has seen stronger estimate revision activity and sports more attractive valuation metrics than CF, so it seems like value investors will conclude that MOS is the superior option right now.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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