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The Mosaic Company

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The agriculture stocks are getting no love from investors. The Mosaic Company (MOS - Free Report) , which makes fertilizer, is trading at just 9.2x forward estimates even as this Zacks #2 Rank (Buy) is expected to see earnings growth in fiscal 2012 and 2013.

Mosaic makes potash and phosphate fertilizers at three mines in Saskatchewan, Canada and two mines in the United States. The Minnesota-based company has distribution facilities in 8 countries and customers in 40 countries.

Volumes Strong For Q4

Mosaic is scheduled to report fiscal fourth quarter results on July 17. On Apr 25 the company updated its fourth quarter guidance ahead of investor visits to the upper end of its initial forecast due to improving volumes.

"Global demand for crop nutrients has increased sharply, driven by an early and strong spring season in North America, combined with increasing shipments to South America," said Jim Prokopanko, President and CEO.

"We expect demand to continue to grow, and crop nutrients to remain affordable. We anticipate another year of high farm income in North America - the second highest on record - and strong farm economics around the world. Our long-term outlook for the business is positive," he added.

Fiscal 2012 and 2013 Zacks Consensus Estimates Rise

Analysts still like what they see ahead of the fourth quarter earnings.

The fiscal 2012 Zacks Consensus Estimate has risen 5 cents to $4.42 per share in the last 60 days.

That is earnings growth of about 1.8% as the company made $4.34 last year.

However, growth is looking up for fiscal 2013.

The 2013 Zacks Consensus Estimate has risen 4 cents to $5.09 in the prior 2 months. That is earnings growth of 15.4%.

Value Is Still There

Shares have been pounded since peaking in 2011.

But this has created a buying opportunity for value investors.

Along with a P/E under 10, Mosaic also has a price-to-book ratio of 1.7. A P/B ratio under 3.0 usually indicates value.

Additionally, it has other solid fundamentals such as a 1-year return on equity (ROE) of 17.9% which is well above the average of the S&P 500 at 13.1%.

Shareholders are also being rewarded with a dividend which is currently yielding 1%.

Investors have been dumping fertilizer stocks for months. The company is always the first fertilizer to report earnings. It will be leading the way on July 17. Has the sell-off been much ado about nothing? Stay tuned.

This Week's Value Zacks Rank Buy Stocks

Can an airline have both value and growth? Hawaiian Holdings Inc. (HA), the parent of Hawaiian Airlines, is expected to see high double digit earnings growth in 2012. Yet this Zacks #1 Rank (Strong Buy) is also dirt cheap, with a forward P/E of only 4.6. Read the full article.

EnerSys Inc. (ENS) has doubled its earnings in the last two years as the recovery took hold and battery sales grew. This Zacks #1 Rank (Strong Buy) is still a value stock with a forward P/E of just 9.4. Read the full article.

Titan International Inc. (TWI) started out the year on fire, posting record results in Q1 in what is expected to be a strong year. Yet investors have been selling the shares since May, making this Zacks #1 Rank (Strong Buy) a bargain with a forward P/E of 7.9. Read the full article.

CBS Corporation (CBS) is firing on all cylinders as it recently reported a record first quarter. Despite shares surging to 3-year highs, this Zacks #1 Rank (Strong Buy) has plenty of value, with a forward P/E of just 8.2. Read the full article.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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