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

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Mosaic (MOS - Free Report) closed at $37.36 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 1.04%.

Heading into today, shares of the fertilizer maker had lost 8.62% over the past month, lagging the Basic Materials sector's loss of 0.72% and the S&P 500's gain of 0.64% 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 $0.86 per share. This would mark a year-over-year decline of 73.29%. Our most recent consensus estimate is calling for quarterly revenue of $3.16 billion, down 40.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $13.18 billion, which would represent changes of -64.67% and -31.11%, respectively, from the prior year.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.67% lower. Mosaic currently has a Zacks Rank of #3 (Hold).

Investors should also note Mosaic's current valuation metrics, including its Forward P/E ratio of 9.53. Its industry sports an average Forward P/E of 10.37, so we one might conclude that Mosaic is trading at a discount comparatively.

Also, we should mention that MOS has a PEG ratio of 1.36. 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 1.36 based on yesterday's closing prices.

The Fertilizers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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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