2 Ex-Dividend Stocks With Buy Ratings

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Tuesday, meaning an investor must purchase the shares Monday to qualify for the next dividend payment: Mosaic ( MOS) and ABB ( ABB).

Both of the stocks are rated buy at TheStreet Ratings.

Mosaic

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.

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ABB

The automation and power technologies company received $70 million of orders for projects with the Saudi Electricity Co., which were booked in the first quarter, ABB said on Thursday.

"In our view ABB's risk/reward profile remains attractive as the shares trade on a PE 12x 2013e (15% below mid-cycle levels) despite having a strong balance sheet," Bank of America Merrill Lynch analysts wrote in a report Thursday. "Transmission and Distribution demand looks solid and there are signs that the power transformer pricing is leveling off or even improving. We also think Chinese demand can recover in H2 which would significantly boost ABB's profits."

Rated "B (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin was basically the same as it was the previous year.

ABB has weak liquidity. Its Quick Ratio is 1, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 5.99% from the prior year.

TheStreet Ratings' price target is $23.20.

-- Written by Alexandra Zendrian

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