The Mosaic Company’s MOS stock looks promising at the moment. MOS benefits from healthy demand for phosphate and potash and actions to improve its cost structure. Rising earnings estimates and cheap valuation are other positives. MOS stock has rallied roughly 12% over the past month.  

We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it is poised to carry the momentum ahead.

Let's see what makes MOS stock an attractive investment option at the moment.

Mosaic’s FY25 Earnings Estimates Northbound

Earnings estimates for MOS for 2025 have been going up over the past 60 days, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2025 has increased by 7.3%. The consensus estimate for 2025 earnings is currently pegged at $2.21, reflecting an expected year-over-year growth of 7.7%. 

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

Valuation Looks Attractive for MOS Stock

MOS’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential. Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value fertilizer stocks, MOS is currently trading at a trailing 12-month EV/EBITDA multiple of 5.4, cheaper compared with the industry average of 11.45. MOS also has a Value Score of A.

MOS Stock Gains on Healthy Demand & Cost Actions

Mosaic is gaining from the strong demand for phosphate and potash, aided by favorable agricultural conditions. Attractive farm economics is driving demand for fertilizers globally. Farmer economics remain favorable in most global growing regions due to strong crop demand and affordable inputs.

Demand for grains and oilseeds remains high globally. Improved farmer affordability is also likely to continue to drive demand for fertilizers. Improved crop prices have also incentivized fertilizer application by growers. In North America, strong yields, early harvest and growers’ need to replenish soil nutrients have ushered in a favorable environment. Demand in Brazil is also expected to be driven by healthy grower economics and low levels of inventories. Low inventory levels, pent-up purchases and favorable weather conditions are also expected to drive demand in India.

The company is taking actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to boost profitability. MOS remains on track with its cost-reduction plan announced last year, which is expected to drive $150 million in run-rate cost reductions by the end of 2025.

Mosaic also remains committed to carrying out investments with high returns with moderate capital expenditures. It has completed the 800,000-ton MicroEssentials capacity conversions. The Esterhazy Hydrofloat project, which will add 400,000 tons in milling capacity, is expected to be completed by the middle of this year. The construction of a new blending and distribution center in Palmeirante, Brazil is also expected to be completed in the third quarter of 2025.

The Mosaic Company Price and Consensus

The Mosaic Company price-consensus-chart | The Mosaic Company Quote

MOS’ Zacks Rank & Other Key Picks

MOS currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Sylvamo Corporation SLVM and ICL Group Ltd ICL, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 207% in the past year.
 
Sylvamo beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.7%, on average. SLVM’s shares have rallied roughly 61% over the past year. 

The Zacks Consensus Estimate for ICL Group’s current-year earnings has increased by 8.8% in the past 60 days. ICL beat the consensus estimate in each of the last four quarters with the average surprise being 18.1%.

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