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MOS Shares Rally 29% in 3 Months: What's Driving the Stock?

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Key Takeaways

  • Mosaic shares jumped 29.1% in three months, outperforming its industry and the S&P 500.
  • MOS is gaining from rising fertilizer demand driven by favorable farm economics and favorable crop prices.
  • Mosaic targets $150M in annualized savings by end-2025 through continued cost-cutting initiatives.

The Mosaic Company’s (MOS - Free Report) shares have popped 29.1% over the past three months. The company has also outperformed its industry’s 17.3% rise and the S&P 500’s roughly 5.5% increase over the same period.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a look at the factors that are driving this stock.

Mosaic Benefits From Higher Demand & Cost Cuts

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

Mosaic is benefiting from increased global demand for phosphate and potash, which is aided by favorable agricultural circumstances. Favorable farm economics are driving worldwide fertilizer consumption, with strong crop demand and low input costs continuing to benefit farmers in major growing regions.

Global demand for grains and oilseeds remains strong, and improved farmer affordability is expected to keep fertilizer use stable. Higher crop prices have led growers to apply more fertilizer. In North America, high yields and the need to replenish soil nutrients have resulted in a positive market. In Brazil, improved farmer economics and low inventories are likely to boost demand. Similarly, in India, pent-up demand and low inventories are expected to stimulate increased fertilizer consumption.

Mosaic is also actively cutting costs in response to ongoing operational challenges. Profits are expected to be driven by transformational actions targeted at enhancing cost efficiency. The company is continuing with its cost-cutting strategy and aims to deliver $150 million in annualized savings by the end of 2025.

MOS’s Rank & Other Key Picks

MOS currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Centrus Energy Corp. (LEU - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - 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 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with the average earnings surprise being 272.7%. The company's shares have rallied 333.9% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.





 

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