5 Best Materials Stocks to Buy Now

2. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 66

The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. As of August 16, The Mosaic Company (NYSE:MOS) has gained 67.32% over the past twelve months and is offering a forward dividend yield of 1.13%, which the company supports with free cash flows of $1.68 billion.

On August 1, The Mosaic Company (NYSE:MOS) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $3.64 and generated a revenue of $5.37 billion, up 91.85% year over year.

On August 3, Citi analyst P.J. Juvekar upgraded The Mosaic Company (NYSE:MOS) to Buy from Neutral and raised his price target to $61 from $57. The analyst expects agriculture stocks to drive outperformance in a slowing economic environment.

At the close of Q1 2022, 66 hedge funds disclosed ownership of stakes in The Mosaic Company (NYSE:MOS). The total value of these stakes amounted to $1.53 billion, up from $1.34 billion in the previous quarter with 46 positions. The hedge fund sentiment for the stock is positive.

As of June 30, Soroban Capital Partners owns more than 6.72 million shares of The Mosaic Company (NYSE:MOS) and is the largest shareholder in the company. The fund’s stakes are valued at $317.74 million, up 37% from its prior stakes, and the investment covers 2.74% of Soroban Capital Partners’ 13F portfolio.

Here is what Carillon Tower Advisers had to say about The Mosaic Company (NYSE:MOS) in its first-quarter 2022 investor letter:

“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer Mosaic (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”