Both of the stocks are rated buy at TheStreet Ratings.
The potash company updated its fourth-quarter guidance on Wednesday saying it it anticipates potash and phosphate volumes will be toward the upper-end of its previously stated estimates of between 1.7 million tonnes and 2.2 million tonnes for potash and between 2.3 million tonnes and 2.7 million tonnes for phosphate."Over the past several months, we had recommended a relative nitrogen over potash trade due to our comfort with nitrogen volumes and margins (given low North American gas costs)," Canaccord analysts wrote in a report on Wednesday. "Going forward, given investors' relative indifference since November on the potash names (expectations are not elevated), last month's China potash contract settlement (that was in line with our view of putting a bottom into pricing and moving volumes again), and our expectation that potash volumes would increase with the US, Brazil, and Southeast Asian markets returning as buyers through calendar Q2, we believe that investors should have begun a relative overweight reversal of our previous trade, and had Mosaic and Potash Corp. (POT : NYSE : BUY : TP US$57.00) on the long side. We commented that the trade may be slightly early, as investors on average would continue to remain without conviction on the potash producers until product begins to move in earnest onto the farm in Q2." Rated "B- (Buy)" by TheStreet Ratings: The company's third-quarter gross profit margin decreased from the previous year. Mosaic is extremely liquid. Its Quick Ratio is 2.39, which shows the company can meet its short-term cash needs. In the third quarter, stockholders' net worth increased 7.53% from the prior year. TheStreet Ratings' price target is $58.72.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV