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Tale of the Tape

Zacks Equity Research

Weakness Seen in Mosaic Company (MOS) Estimates: Should You Stay Away?
September 22, 2016


Trades from $3

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is The Mosaic Company (MOS - Analyst Report) , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in MOS.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen estimates moving down from 52 cents a share a month ago to its current level of 45 cents.

Also, for the current quarter, Mosaic Company has seen 2 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 9 cents a share from 11 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 14.3% in the past month.

MOSAIC CO/THE Price and Consensus

MOSAIC CO/THE Price and Consensus | MOSAIC CO/THE Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Basic Materials sector, you may instead consider a better-ranked stock - Green Plains Inc. (GPRE - Snapshot Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.

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