10 Best Mid Cap Value Stocks To Invest In

6. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 34

Market Capitalization as of October 28, 2024: $8.67 Billion

Forward P/E as of October 28, 2024: 11.2

The Mosaic Company (NYSE:MOS) is a chemicals company that mines and processes phosphate and potash minerals into crop nutrients to help feed the world. The company owns a range of products such as performance fertilizers, advanced crop nutrition, and commodity offerings.

The Mosaic Company (NYSE:MOS) serves customers in more than 40 countries and employs more than 13,000 people across six countries. In addition to that, the company also made contributions worth $12 million to the community. Aligning with its corporate social responsibility, the company increased the adoption of 4R nutrient stewardship practices on more than 6 million acres in North America.

In the second quarter of 2024, the company generated $2.8 billion in revenues, experiencing a slight decline due to decreasing selling prices. Gross margin stood at 14% in the second quarter of 2024. Despite a slight financial downturn, the company is working immensely on cost reduction initiatives that were introduced last year. The Mosaic Company (NYSE:MOS) has achieved more than one-third of the targeted $150 million run rate relative to 2023. In addition to that, the company is also on course to reduce 2024 capital expenditures by $200 million from 2023 levels.

Overall, 34 hedge funds held stakes in MOS at the close of Q2 2024, positioning Mosaic Company (NYSE:MOS) as one of the best mid-cap value stocks to invest in. Analysts are also bullish on the stock and their median price target implies an upside of 12% from current levels.

Ariel Investments’ Ariel Focus Fund stated the following regarding The Mosaic Company (NYSE:MOS) in its first quarter 2024 investor letter:

“There were a few notable performance detractors in the quarter. Shares of producer and marketer of crop nutrients, The Mosaic Company (NYSE:MOS), declined in the period, as weaker than expected phosphates and fertilizer volumes as well as higher raw material and production costs weighed on the bottom-line. Management reiterated expectations for tight global grain and oilseed markets in 2024 and believe growers will continue to be incentivized to maximize yields by applying fertilizers. Meanwhile, MOS is focused on cost discipline, free cash flow generation and paying down debt, while continuing to return significant capital to shareholders through buybacks. Given management’s disciplined approach towards capital allocation, we continue to believe the company is well positioned from a risk/reward standpoint.”