The Mosaic Company (NYSE:MOS) is one of the world’s largest fertiliser companies. It accounts for about 12% to 14% of the global potash and sells to about 40 countries globally. The company’s purview grows as the globe increasingly focuses on fertilisers to boost food security.
The stock is rated lowly on growth and momentum styles, as is characteristic of the agricultural industries. However, the company is rated a strong A on the value investing style. The rating is supported by a low forward PE of only 9.86. The EPS is $3.76 and is also expected to record growth of 7% in the foreseeable future. Additionally, a dividend yield of 2.16% could entice some investors.
The key to successful investing in The Mosaic Company stock is understanding its market environment. Characterised by a beta of 1.54, the company has more risk than the market index. The market risk profile and a PEG ratio of 1.41 indicate the need to be careful when handling the stock. This does not mean that one should not consider The Mosaic Company for investment. By targeting the right price, investors can comfortably make good returns from the stock.
The price range for the stock is between $31 and $57 over the last 52 weeks. YTD, the stock bled significantly. This analysis considers that The Mosaic Company established support at $31 and some resistance at $42. At a valuation of $37, the share price still has room for further gains.
Stock set for gains as 20-day MA rises above the 50-day
Analysis of the moving averages shows the 20-day average rising above the 50-day average. Both averages are above the 200-day average. The pattern confirms the expectations for gains in the short term. The projection is that the share price could gain significantly in the coming days. However, the price will swing between support and resistance levels in the medium term.
How attractive is The Mosaic Company stock?
The Mosaic Company is an attractive value stock in the agricultural inputs segment. It has more than 12% share of the global potash market and sales in 40 countries. The company’s shares may gain on the back of the strong fundamentals.
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