Here's Why You Should Add Mosaic Stock to Your Portfolio

The Mosaic Company’s MOS stock looks promising at the moment. MOS benefits from healthy demand for phosphate and potash, high-return investments and actions to improve its cost structure. Rising earnings estimates and a cheap valuation are the other positives.   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.MOS Outperforms IndustryMosaic has outperformed the Zacks Fertilizers industry year to date. Its shares have rallied 40.5% compared with a 24.4% rise of the industry.Image Source: Zacks Investment ResearchMosaic’s FY25 Earnings Estimates NorthboundEarnings 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 13.2%. The consensus estimate for 2025 earnings is currently pegged at $3.17, reflecting an expected year-over-year growth of 60.1%.Valuation Looks Attractive for MOS StockMOS’ 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 7.03, cheaper compared with the industry average of 14.51. MOS also has a Value Score of A.MOS Stock Gains on Healthy Demand & Cost ActionsMosaic is gaining from the strong demand for fertilizers, aided by favorable agricultural conditions. Attractive farm economics continue to drive demand for fertilizers globally. Farmer economics remain favorable in most global growing regions due to strong crop demand and affordable inputs. The phosphate market is benefiting from higher global demand and low producer and channel inventories. Strong demand and supply tightness have also led to an uptick in phosphate and potash prices this year. 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 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 and pent-up purchases, backed by increased government support, are also expected to drive demand in India. MOS expects fertilizer markets to remain favorable through 2025, supported by strong demand and tight supply.MOS’s actions to improve its operating cost structure through transformation plans are expected to boost profitability. It remains on track with its cost-reduction plan, which is now expected to drive $250 million in run-rate cost reductions by the end of 2026, having already achieved $150 million in cost reduction targets. The additional cost reductions are expected to be realized through optimization of the supply chain, automation of administrative functions, absorption of fixed costs and operational cost cuts. MOS also remains committed to carrying out investments with high returns and moderate capital expenditures. It has completed the 800,000-ton MicroEssentials capacity conversion, with volumes expected to rise 25% in 2025. The Esterhazy Hydrofloat project, which added 400,000 tons in milling capacity, is complete and produced the first potash tons in July 2025, with a ramp-up expected by the end of the year. Hydrofloat will enable Mosaic to produce low-cost potash tons. The construction of a new blending and distribution center in Palmeirante, Brazil, was also completed in July 2025, supporting the company’s long-term growth objectives in Brazilian agriculture markets. The facility is expected to enable Mosaic Fertilizantes to increase overall sales by 1 million tons.MOS generates substantial cash flows, which enable it to finance its strategic growth investment, pay down debt and drive shareholder value. The company generated an operating cash flow of $610 million and a free cash flow of $305 million in the second quarter of 2025. It expects to generate stronger cash flow in the second half of 2025, allowing debt reductions and shareholder returns through dividends and buybacks.  MOS’s Zacks Rank & Other Key PicksMOS currently carries a Zacks Rank #2 (Buy).Other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Agnico Eagle Mines Limited AEM and Intrepid Potash, Inc. IPI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $9.52, indicating a 27.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.4%. CRS’ shares have surged roughly 55% in the past year.Agnico Eagle beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 10.3%, on average. AEM’s shares have rallied roughly 117% over the past year. The Zacks Consensus Estimate for Intrepid Potash’s current-year earnings has increased by 122.6% in the past 60 days. The consensus estimate for IPI’s current-year earnings is pegged at $1.18, indicating a 493.3% year-over-year increase.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Intrepid Potash, Inc (IPI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks