Should You Buy Mosaic Co (MOS) Stock Tuesday?

InvestorsObserver gives Mosaic Co (MOS) a strong valuation score of 95 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. MOS currently holds a better value than 95% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

MOS gets a 95 Valuation Rank today. Find out what this means to you and get the rest of the rankings on MOS!

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Metrics Analysis

MOS has a trailing twelve month Price to Earnings (PE) ratio of 8.7. The historical average of roughly 15 shows a good value for MOS stock as investors are paying lower share prices relative to the company's earnings. MOS's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 3.71 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. MOS's 12-month-forward PE to Growth (PEG) ratio of 0.93 is considered a roughly average value as the market is valuing MOS right in line with its projected earnings growth. MOS's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

MOS's valuation metrics are adequate at its current price due to a fairly valued PEG ratio due to strong growth. MOS's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Mosaic Co (MOS) stock.