Mosaic Co (MOS), Potash Corp./Saskatchewan (USA) (POT) – 4 Hot Fertilizer Stocks: Which One Is a Buy?

CF doesn’t provide quarterly guidance but has left investors hopeful with the words “very positive for the second quarter”. CF is banking on urea ammonium nitrate, or UAN, which makes up most of its sales volumes. UAN prices have also been on an upward trajectory in recent months, which bodes well for the company. CF’s stock is just about 20% away from its 52-week low and is trading at a remarkably low P/E of six times.

Or is it the other two?

Canpotex’s contract commitments to China and India will continue into the second quarter, so investors can again expect high offshore shipment numbers from PotashCorp and Mosaic Co (NYSE:MOS). To investors’ delight, PotashCorp expects to earn anything between $0.70 and $0.85 per share next quarter, which, if achieved, will be an impressive improvement over the $0.60 per share it earned same time last year. At 17 times P/E, PotashCorp might not be a bargain basement stock, but a handsome dividend yield of 3.4% makes up for it.

Though Mosaic didn’t provide an EPS guidance for its next quarter, investors can safely remain optimistic. Mosaic follows an offbeat financial year wherein it will be reporting its fourth-quarter numbers in July. For the nine months ending February 28, Mosaic earned $3.29 per share, which is greater than $3.24 it earned in the comparable period last year. With the ongoing quarter expected to be a strong one, Mosaic looks poised to end its financial year on a high note. Though the stock is nearing its 52-week high, there appears enough room for upside at 13 times P/E.

And the award goes to…

While all four stocks look good, I’ll pitch for CF Industries and Agrium at this point in time. Having lost significant value in recent months and trading below 10 times P/E each, they look promising. I’ll soon give you a deeper insight into CF Industries and Agrium together with reasons why you should remain bullish on them. Keep watching this space.

The article 4 Hot Fertilizer Stocks: Which One Is a Buy? originally appeared on Fool.com and is written by Neha Chamaria.

Fool contributor Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns shares of CF Industries Holdings (NYSE:CF).

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