Top Picks 2016: Mosaic

01/22/2016 7:00 am EST

Focus: STOCKS

James Pearce

Director of Research, Investing Daily

I believe 2016 will the year that momentum stocks finally get their comeuppance, explains Jim Pearce, director of portfolio strategy for Investing Daily.

In that case, the best growth stocks for the coming year will be those that are able to grow earnings now as opposed to later.

For that reason, I am focusing on companies that are able to maintain profit margins while growing their revenue. 

Also, companies that deal in hard assets should see a multiplier effect as commodity prices reverse course now that the Fed has begun raising interest rates.

For all those reasons, The Mosaic Company (MOS) stands out as a low-risk/high-reward opportunity growth play in 2016.

My proprietary IDEAL Stock Rating System assigns Mosaic a perfect score of 10 due to its high dividend yield, healthy cash flow, and low valuation based on forward earnings.

The past year has been brutal for Mosaic as global commodity prices have plunged, but now priced near $30, it could easily appreciate 25% or more over the next twelve months due its strong fundamentals.

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