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

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In the latest trading session, Mosaic (MOS - Free Report) closed at $53.14, marking a -0.75% move from the previous day. This move lagged the S&P 500's daily gain of 2.46%. Elsewhere, the Dow gained 2.59%, while the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the fertilizer maker had gained 10.64% over the past month. This has outpaced the Basic Materials sector's gain of 8.95% and the S&P 500's gain of 4.56% in that time.

Investors will be hoping for strength from Mosaic as it approaches its next earnings release, which is expected to be November 7, 2022. The company is expected to report EPS of $3.52, up 160.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.01 billion, up 75.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.15 per share and revenue of $20.99 billion. These totals would mark changes of +160.91% and +69.86%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Mosaic. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 2.27% lower within the past month. Mosaic is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Mosaic's current valuation metrics, including its Forward P/E ratio of 4.07. For comparison, its industry has an average Forward P/E of 5.32, which means Mosaic is trading at a discount to the group.

Meanwhile, MOS's PEG ratio is currently 0.58. 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 industry currently had an average PEG ratio of 0.61 as of yesterday's close.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MOS in the coming trading sessions, be sure to utilize Zacks.com.


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