Mosaic Co (MOS): Today's Featured Chemicals Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Mosaic ( MOS) pushed the Chemicals industry lower today making it today's featured Chemicals laggard. The industry as a whole closed the day down 1.2%. By the end of trading, Mosaic fell $1.12 (-1.8%) to $60.99 on light volume. Throughout the day, 2.1 million shares of Mosaic exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $60.75-$61.80 after having opened the day at $61.55 as compared to the previous trading day's close of $62.11. Other companies within the Chemicals industry that declined today were: Pure Bioscience ( PURE), down 10.2%, Braskem ( BAK), down 6.1%, BioFuel Energy Corporation ( BIOF), down 6.1%, and Lightbridge ( LTBR), down 4.1%.
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The Mosaic Company produces and markets concentrated phosphate and potash crop nutrients for the agriculture industry worldwide. Mosaic has a market cap of $18.19 billion and is part of the basic materials sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Mosaic a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Mosaic as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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