Back to top

Image: Bigstock

Mosaic (MOS) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Mosaic (MOS - Free Report) closed the most recent trading day at $51.31, moving +0.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.15%, and the Nasdaq, a tech-heavy index, added 0.37%.

Heading into today, shares of the fertilizer maker had lost 3.82% over the past month, lagging the Basic Materials sector's gain of 1.01% and the S&P 500's loss of 3.51% in that time.

Wall Street will be looking for positivity from Mosaic as it approaches its next earnings report date. In that report, analysts expect Mosaic to post earnings of $3.68 per share. This would mark year-over-year growth of 172.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.21 billion, up 81.54% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.46 per share and revenue of $21.13 billion. These totals would mark changes of +167.06% and +71.02%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Mosaic. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.22% lower within the past month. Mosaic is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Mosaic is currently trading at a Forward P/E ratio of 3.8. This valuation marks a discount compared to its industry's average Forward P/E of 5.1.

Investors should also note that MOS has a PEG ratio of 0.54 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Fertilizers was holding an average PEG ratio of 0.59 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Mosaic Company (MOS) - free report >>

Published in