The Mosaic Company (NYSE:MOS) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$38.15 at one point, and dropping to the lows of US$31.93. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Mosaic's current trading price of US$34.19 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Mosaic's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Mosaic
What's The Opportunity In Mosaic?
Good news, investors! Mosaic is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $54.10, but it is currently trading at US$34.19 on the share market, meaning that there is still an opportunity to buy now. However, given that Mosaic's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Mosaic?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Though in the case of Mosaic, it is expected to deliver a negative earnings growth of -15%, which doesn't help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? Although MOS is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to MOS, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you've been keeping an eye on MOS for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Be aware that Mosaic is showing 3 warning signs in our investment analysis and 1 of those is a bit concerning...
If you are no longer interested in Mosaic, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.