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Here's Why You Should Add Mosaic Stock to Your Portfolio Now

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Key Takeaways

  • MOS has surged 38% in 3 months, with support from strong global fertilizer demand.
  • Earnings for FY25 are projected to rise 42.4%, driven by solid demand and cost-cutting efforts.
  • Global crop demand and low inventories in key markets are expected to sustain fertilizer consumption.

The Mosaic Company’s (MOS - Free Report) shares have rallied roughly 38% over the past three months. We are positive about MOS’ prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.

Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock a compelling choice for investors right now.

Mosaic’s Stock Outperforms Industry

MOS has outperformed the industry it belongs to over the past year. The company’s shares have rallied 21.4% compared with a 19.5% rise of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Estimates for MOS

The Zacks Consensus Estimate for earnings for 2025 for Mosaic is currently pegged at $2.82 per share, implying year-over-year growth of 42.4%.

Mosaic Gains From Higher Demand & Cost Cuts

MOS reported adjusted earnings of 49 cents per share for the first quarter of 2025, which beat the Zacks Consensus Estimate of 39 cents. 

Mosaic is benefiting from the high global demand for phosphate and potash, which is bolstered by supportive agricultural conditions. Favorable farm economics are driving global fertilizer consumption, as strong crop demand and cheap input costs continue to favor farmers in key growing regions.

Global demand for grains and oilseeds remains high, and improved farmer affordability is likely to keep fertilizer usage stable. Higher crop prices have prompted growers to use more fertilizer. In North America, strong yields and the need to replenish soil nutrients have generated a favorable market environment. In Brazil, good farmer economics and low inventory levels are expected to stimulate demand. Similarly, in India, pent-up demand and lower inventories are likely to drive increasing fertilizer usage.

Mosaic is also actively reducing expenses in response to persistent operational issues. Its transformation measures aimed at increasing cost efficiency are projected to boost profits. The company is moving forward with its cost-cutting strategy, which is intended to generate $150 million in annualized savings by the end of 2025.

Other Stocks to Consider

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Hawkins Inc. (HWKN - Free Report) and ATI Inc. (ATI - Free Report) .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 132.3% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

Hawkins, which currently carries a Zacks Rank #2, beat the consensus estimate in one of the trailing four quarters while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 8.2%, on average. The company's shares have rallied 52.9% in the past year.

ATI, which currently carries a Zacks Rank #2, beat the consensus estimate in three of the trailing four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 12.5%, on average. The company's shares have rallied 41.6% in the past year.

 

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