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

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In the latest trading session, Mosaic (MOS - Free Report) closed at $54.34, marking a +0.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 1.54%.

Coming into today, shares of the fertilizer maker had gained 8.19% in the past month. In that same time, the Basic Materials sector lost 3.08%, while the S&P 500 lost 4.07%.

Mosaic will be looking to display strength as it nears its next earnings release. In that report, analysts expect Mosaic to post earnings of $1.52 per share. This would mark a year-over-year decline of 36.93%. Meanwhile, our latest consensus estimate is calling for revenue of $3.42 billion, down 12.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.79 per share and revenue of $15.44 billion, which would represent changes of -29.25% and -19.25%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Mosaic. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 13.07% lower. Mosaic is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, Mosaic is currently trading at a Forward P/E ratio of 6.95. This represents a discount compared to its industry's average Forward P/E of 7.33.

We can also see that MOS currently has a PEG ratio of 0.99. 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. Fertilizers stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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