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

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Mosaic (MOS - Free Report) closed at $43.61 in the latest trading session, marking a +1.21% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.

Coming into today, shares of the fertilizer maker had lost 13.56% in the past month. In that same time, the Basic Materials sector lost 6%, while the S&P 500 lost 3.9%.

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 $1.37 per share. This would mark a year-over-year decline of 43.15%. Our most recent consensus estimate is calling for quarterly revenue of $3.34 billion, down 14.79% from the year-ago period.

MOS's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $15.13 billion. These results would represent year-over-year changes of -31.43% and -20.91%, respectively.

Any recent changes to analyst estimates for Mosaic should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.81% lower. Mosaic currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Mosaic is currently trading at a Forward P/E ratio of 5.71. For comparison, its industry has an average Forward P/E of 7.11, which means Mosaic is trading at a discount to the group.

It is also worth noting that MOS currently has a PEG ratio of 0.82. 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 0.89 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.

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


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