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Is The Mosaic Company (MOS) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.47, which compares to its industry's average of 13.24. Over the last 12 months, MOS's Forward P/E has been as high as 15.57 and as low as 10.58, with a median of 12.68.
Another valuation metric that we should highlight is MOS's P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.90. MOS's P/B has been as high as 0.98 and as low as 0.61, with a median of 0.74, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOS has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.22.
Finally, we should also recognize that MOS has a P/CF ratio of 4.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MOS's current P/CF looks attractive when compared to its industry's average P/CF of 13.60. Within the past 12 months, MOS's P/CF has been as high as 7.60 and as low as 4.60, with a median of 5.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Mosaic Company is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOS feels like a great value stock at the moment.
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Is The Mosaic Company (MOS) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.47, which compares to its industry's average of 13.24. Over the last 12 months, MOS's Forward P/E has been as high as 15.57 and as low as 10.58, with a median of 12.68.
Another valuation metric that we should highlight is MOS's P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.90. MOS's P/B has been as high as 0.98 and as low as 0.61, with a median of 0.74, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MOS has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.22.
Finally, we should also recognize that MOS has a P/CF ratio of 4.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MOS's current P/CF looks attractive when compared to its industry's average P/CF of 13.60. Within the past 12 months, MOS's P/CF has been as high as 7.60 and as low as 4.60, with a median of 5.82.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Mosaic Company is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MOS feels like a great value stock at the moment.