CA - Mosaic: Today's Definition Of A Contrarian Value Pick

2024-06-09 16:48:05 ET

Summary

• Mosaic's stock price decline of -65% from April 2022 has turned it into a highly attractive investment opportunity for long-term investors.
• Historical comparisons on earnings, sales, cash flow, and book value point to tremendous upside if fertilizer prices are bottoming during 2024.
• As such, shares are supported by a sound valuation, with any turnaround in investor sentiment likely igniting a major rally.
• I rate Mosaic as a leading pick in the U.S. agriculture sector, providing a great food-related inflation hedge for portfolios.

I last mentioned The Mosaic Company ( MOS ) in November here , as having the potential to witness better product pricing and sales during the upcoming North American crop planting season. While the usual seasonal bottoming pattern in Mosaic's stock price did exactly play out, the -20% quote decline into June has opened a whole new level of "value" for long-term investors....

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