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

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In the latest trading session, Mosaic (MOS - Free Report) closed at $43.65, marking a +0.85% move from the previous day. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 3.64%.

Prior to today's trading, shares of the fertilizer maker had lost 18.36% over the past month. This has lagged the Basic Materials sector's loss of 2.06% and the S&P 500's gain of 0.07% in that time.

Wall Street will be looking for positivity from Mosaic as it approaches its next earnings report date. The company is expected to report EPS of $1.37, down 43.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.34 billion, down 14.79% from the prior-year quarter.

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 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 12.24% lower. Mosaic currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Mosaic is holding a Forward P/E ratio of 5.73. For comparison, its industry has an average Forward P/E of 7.25, which means Mosaic is trading at a discount to the group.

Investors should also note that MOS has a PEG ratio of 0.82 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Fertilizers was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Fertilizers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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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