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5 Reasons to Add Mosaic (MOS) Stock to Your Portfolio Now

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We are optimistic about The Mosaic Corporation’s (MOS - Free Report) prospects and believe that it is appropriate to buy the stock now as it holds promise and will sustain the momentum.

Let’s delve into the factors that make this Zacks Rank #2 (Buy) stock an attractive pick.

What Makes MOS an Attractive Pick

Solid Rank & VGM Score: Mosaic currently has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities to investors. Thus, the company is an appropriate investment option at the moment.

Estimates Movement: The Zacks Consensus Estimate for Mosaic’s earnings has gone up in the past month. Over this period, the earnings estimate for 2018 has moved up 2.1% to $1.91 per share.

The Mosaic Company Price and Consensus

 

The Mosaic Company Price and Consensus | The Mosaic Company Quote

 

Upbeat 2018 View: In November, the company raised adjusted earnings per share (EPS) guidance for 2018, reflecting strong business performance and lower expected effective tax rate for the year.

Mosaic expects adjusted EPS in the band of $1.80-$2.00 for 2018, up from the prior view of $1.45-$1.80. It also expects adjusted EBITDA for 2018 in the range of $1.90-$2 billion, up from the earlier view of $1.80-$1.95 billion.

Vale Fertilizantes Buyout to Drive Growth: The Vale Fertilizantes buyout makes Mosaic one of the leading fertilizer manufacturing and distribution companies in Brazil. The acquisition has enabled the company to capitalize on the rapidly growing Brazilian agricultural market.

The buyout is projected to generate $275 million of annualized improved cash flow by the end of 2020 (with $140-$160 million in synergies expected in 2018). It is also expected to provide considerable leverage to improvements in the crop nutrient business cycle.

An Outperformer: Mosaic has outperformed the industry it belongs to in the past year. The company’s shares have gained 8.5%, against 14.3% decline of the industry.



Other Stocks to Consider

A few other top-ranked stocks in the basic materials space are Verso Corporation , Israel Chemicals Ltd. (ICL - Free Report) and Cameco Corporation (CCJ - Free Report) .

Verso has an expected earnings growth rate of 570.7% for the current year and sports a Zacks Rank #1. The company’s shares have rallied 25.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Israel Chemicals has an expected earnings growth rate of 19.4% for the current year and has a Zacks Rank #2. The company’s shares have moved up 26.1% in the past year.

Cameco has an expected earnings growth rate of 66.7% for the current year and also carries a Zacks Rank #2. Its shares have gained 15.6% in a year’s time.

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