Valued at a market cap of $8.2 billion, The Mosaic Company (MOS) produces and markets concentrated phosphate and potash crop nutrients for the global agricultural industry. The Tampa, Florida-based company also provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks, and Mosaic fits this criterion perfectly. The company distinguishes itself as one of the largest integrated phosphate producers globally and is renowned for helping farmers worldwide grow their crops and keep their soil healthy.
Shares of MOS are trading 32.6% below their 52-week high of $38.30, which they reached on Dec. 19, 2023. The agricultural chemical producer has declined 12.1% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 4.8% return over the same time frame.
In the longer term, MOS stock is down 27.7% on a YTD basis, lagging behind SPX’s 20.1% gains. Moreover, shares of MOS have declined 28.5% over the past 52 weeks, significantly underperforming SPX’s 32.1% returns over the same time frame.
To confirm its bearish trend, MOS has been trading below its 200-day moving average since early March 2023 and has remained below its 50-day moving average since late August.
MOS’ underperformance can be attributed to adverse weather events faced by the company, including Hurricane Francine, which negatively impacted the company’s phosphate production and shipment volumes. The challenging market environment, marked by lower selling prices and sluggish demand in certain segments, further dampened investor confidence.
Shares of MOS declined 1.4% following its Q2 earnings release on Aug. 6 as the company’s reported earnings of $0.54 per share lagged behind the consensus estimates of $0.68. Its revenue of $2.82 billion also fell short of Street forecasts of $2.93 billion. This was primarily driven by a decline in revenues from all its segments.
MOS’ has also underperformed its rival Nutrien Ltd. (NTR), which declined 23.5% over the past 52 weeks and 15.3% on a YTD basis.
Despite MOS’ underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 15 analysts in coverage, and the mean price target of $34 suggests a premium of nearly 33% to its current levels.
On the date of publication, Rashmi Kumari 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.
