5 Value Stocks to Buy According to Billionaire David Tepper

3. The Mosaic Company (NYSE:MOS)

Appaloosa Management’s Stake Value: $55,528,000

Percentage Of Appaloosa Management’s 13F Portfolio: 2.22%

Number of Hedge Fund Holders: 66

PE Ratio as of June 23: 6.42

The Mosaic Company (NYSE:MOS) is involved in the production and mining of potash crop nutrients and related minerals.

The Mosaic Company (NYSE:MOS) reported the Potash Segment revenue for May 2022 at $539 million, up from $246 million in the same period last year, reflecting an increase of over 110%. Similarly, the Phosphates segment saw its revenue increase by 53.7%.

The Mosaic Company (NYSE:MOS) has an attractive P/B ratio of 1.60x, compared to the industry’s average of 1.97x. Furthermore, the stock’s P/CF ratio stands at 6.48x, as opposed to the industry’s average of 10.48x. These metrics support the thesis that The Mosaic Company (NYSE:MOS) is currently trading at a discount to its fair value.

Here’s what Ariel Investments said about The Mosaic Company (NYSE:MOS) in its Q4 2021 investor letter:

“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”

Overall, 66 hedge funds held a stake in The Mosaic Company (NYSE:MOS) at the end of Q1 2022.