• Mosaic (MOS) shows strong technical momentum and is trading above all daily moving averages.
• Shares have gained 26% since the Trend Seeker issued a “Buy” signal.
• MOS stock is also trading near its 52-week high.
• Mosaic is volatile and speculative — use disciplined risk management if considering a position.

Today’s Featured Stock:

Valued at $11.2 billion, Mosaic (MOS) is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. Mosaic is the largest integrated phosphate producer globally and is also among the four largest potash producers in the world.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MOS checks those boxes. Since the Trend Seeker signaled a buy on April 22, the stock has gained 26.38%.

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

MOS Price vs. Daily Moving Averages:

Barchart Technical Indicators for Mosaic:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 0.3% of its 52-week high, it won’t take much to hit another new high.

• Mosaic has a 100% technical “Buy” signal.
• The stock closed at $35.21 on May 16, above its 50-day moving average of $28.07.
• MOS has a Weighted Alpha of +31.15.
• The stock has gained 14.4% over the past year.
• Trend Seeker “Buy” signal intact.
• MOS is trading above its 20, 50 and 100-day moving averages.
• The stock has made 16 new highs and is up 28.4% in the last month.
• The 14-day Relative Strength Index is at 81.74%.
• The technical support level is at $34.67.

Follow the Fundamentals:

• $11.2 billion market cap.
• 19.05x trailing price-earnings ratio.
• Dividend yield 2.5%
• Revenue is projected to grow 14.76% this year but fall 1.06% next year.
• Earnings are estimated to increase 43.42% this year but decrease 6.55% next year.

Analyst and Investor Sentiment on Mosaic:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued nine “Strong Buy,” one “Moderate Buy,” and seven “Hold” opinions on the stock with a price target of $37.70.
• Value Line gives the stock an above-average rating but a price target of only $30.
• CFRA’s MarketScope gives the stock a “Hold.”
• MorningStar thinks the stock is fairly valued and comments: “We see little direct impact from tariffs on Mosaic. Potash is currently exempt from US tariffs. While phosphate is subject to a 10% import tariff, Mosaic produces its phosphates domestically. This should boost margins as prices rise to incorporate the tariff.”
• Of the 7,273 individual investors following the stock on Motley Fool, 6,596 think the stock will beat the market, while 677 think it won’t.
• 44,010 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Mosaic currently has momentum and support from both the market and individual investors, but it faces some uncertainty about the effect of tariffs.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.