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 0.5%. By the end of trading, Mosaic fell $0.73 (-1.2%) to $58.25 on light volume. Throughout the day, 1,651,023 shares of Mosaic exchanged hands as compared to its average daily volume of 2,683,100 shares. The stock ranged in price between $58.25-$59.09 after having opened the day at $59.07 as compared to the previous trading day's close of $58.98. Other companies within the Chemicals industry that declined today were: Valhi ( VHI), down 6.1%, Tronox ( TROX), down 4.1%, Lightbridge ( LTBR), down 4.0% and WD-40 Company ( WDFC), down 3.8%.
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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 $17.3 billion and is part of the basic materials sector. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Mosaic a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Mosaic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Yongye International ( YONG), down 10.4%, Gevo ( GEVO), down 9.7%, Synthesis Energy Sys ( SYMX), down 7.4% and Solazyme ( SZYM), down 5.0%.

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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