On Thursday, Mosaic reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile. It improved to 83, up from 78 the day before. Mosaic stock, like most stocks, has taken a hit in the 2022 bear market. But it's holding up better than most. The question now: Can the fertilizer maker maintain that momentum?
A perusal of market history shows that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves. The RS Rating hike puts Mosaic stock in that elite group.
Mosaic Stock Well Positioned Amid Food Shortage
Putin's war on Ukraine has cut the world's food supply. Combined with unfavorable weather in parts of the world, that's led food prices to climb. Farmers will need more fertilizer to boost crops. And Mosaic is among leading producers and sellers of fertilizers and animal feed sold globally.
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Among other key ratings, Mosaic stock has an excellent 95 Composite Rating, of a best-possible 99. That puts it in the top 5% of stocks on a group of fundamental and technical metrics. It has an EPS Rating of 81. Look for that to improve; it's reported strong triple-digit profit growth in recent quarters. It's in the Chemicals-Agricultural group, which ranks a decent No. 42 on the IBD list of 197 industry groups. Mosaic stock fell more than 5% Thursday however amid continuing overall market consolidation.
Mosaic recently climbed more than 5% past a 41.25 entry in a second-stage cup with handle, meaning it's now out of a proper buy range. Look for the stock to offer a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average.
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In terms of fundamentals, top and bottom line growth moved higher on a quarter-over-quarter basis in the company's most recent report. Earnings soared 323% to $2.41 per share last quarter. That was up from 242% growth in the prior report. Revenue grew 71% last quarter to $3.92 billion, up from 56% growth the prior quarter. The company is expected to report its latest earnings and sales numbers on or around Aug. 2.
Among Top 5 In Group
Mosaic stock earns the No. 4 rank among its peers in the Chemicals-Agriculture industry group. Sociedad Quimica Y Minra and LSB Industries are also among the group's highest-rated stocks.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary Relative Strength Rating measures price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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