Is Mosaic Company Stock Underperforming the Dow?
Headquartered in Tampa, Florida, The Mosaic Company (MOS) produces and markets concentrated phosphate and potash crop nutrients in the United States and internationally. With a market cap of $8.6 billion, the company operates in three segments: Phosphates, Potash, and Mosaic Fertilizantes.
Companies with a market capitalization between $2 billion and $10 billion are generally classified as 'mid-cap stocks,” and MOS perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the agricultural inputs industry.
Despite its strengths, the company has declined 19.8% from its 52-week high of $33.44, achieved on Apr. 8, last year. However, the company has demonstrated resilience, surging 9% over the past three months, outpacing the broader Dow Jones Industrial Average’s ($DOWI) 1.3% fall during the same time frame.
Yet, MOS stock has dropped marginally over the past six months and 17.4% over the past 52 weeks, compared to $DOWI’s marginal dip in the past six months and 6.1% surge over the past year.
MOS has been trading above its 200-day and 50-day moving average since mid-March, reflecting its recent upturn.
MOS stock declined marginally following its Q4 earnings release on Feb. 27. The company reported net sales of $2.8 billion, declining 12.5% year-over-year. The decline was mainly caused by a series of operational and weather-related issues, which reduced the company’s phosphate production by over 700,000 tonnes and potash production by about 250,000 tonnes. Additionally, its operating earnings came in at $100 million. MOS’ EPS amounted to $0.45, failing to surpass Wall Street estimates by 15.1%.
Its rival, CF Industries Holdings, Inc. (CF), has outpaced MOS, with its shares declining 8.7% over the past six months and 4.5% over the past 52 weeks.
Wall Street analysts are moderately bullish on MOS’ prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $32.35 suggests a potential upside of 20.7% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.