The Mosaic Company (MOS)
Entry: Unlock
Price target: 33.00-34.00
Second PT: Unlock
The farmers of America are eager to welcome President Trump back to office, citing his deregulatory policies and longstanding support for local growth. While Trump's stringent tariff policies were seen as a challenge for the agricultural sector during his previous term, his administration implemented measures aimed at ensuring the stability and growth of rural America. Although concerns remain about the potential impact of mass deportations and tariff policies on farming, Trump has consistently emphasized his commitment to supporting farmers and simplifying the challenges they face.
Some of those beneficiaries are expected to be fertilizer companies such as Mosaic Co. This is a company that has been around for two decades, focusing on the production and marketing of concentrated phosphate and potash crop nutrients, in other worlds, agriculture fertilizer. Mosaic operates globally, exporting to over 200 countries, including names like Ukraine, Russia, and many others in South America, especially Brazil. Their presence has grown significantly in recent years, moving from covering 2 million acres worldwide to over 9 million. And despite revenue drops due to volatility in the industry, the company has improved their bottomline.
Mosaic Co. is a play for the patient investor who is willing to sustain the holding through the ups and downs of the volatile industry it exists in. Weather and climate impact the stocks performance year over year, but they have generously rewarded their investors with a consistently growing dividend and have also implemented share buybacks to reduce risk. The stock moved above its 200 day moving average for the first time since 2023 last week, suggesting that markets are finally turning bullish again on it.
Please note that this may take beyond this week to come around to price targets.
Interactive Brokers (IBKR)
Entry: Unlock
Price target: 240.00-250.00
Second PT: Unlock
Trading volumes have surged to unprecedented levels in recent years as the barriers to entry for investing and trading have significantly diminished. This democratization of market access has been a boon for brokers, enabling them to capitalize on the influx of new investors. Interactive Brokers (IBKR) has been a standout beneficiary, with its annual revenue more than tripling since 2020, driven by this rapid industry growth.
In its most recent earnings release, Interactive Brokers reported a remarkable $10 billion in annual revenue for 2024, marking a 20% year-over-year increase. This represents the company’s fourth consecutive year of double-digit revenue growth, accompanied by equally impressive profit growth. Pre-tax income reached an all-time high of $3.70 billion last year, underscoring the company's ability to translate top-line growth into bottom-line success. However, IBKR’s price-to-earnings (P/E) ratio currently stands at 30x, slightly above the preferred 15-25x range. Despite this, the company’s robust future earnings trajectory could help normalize this valuation over time.
As of last week, IBKR reached a new all-time high in stock price, buoyed by strong earnings results. This milestone is likely to attract increased attention from investors, potentially driving additional trading volume and sustaining the stock’s momentum. The current setup aligns well with the “Power Earnings Gap” strategy, a method we teach in our courses, which you may access here. This strategy focuses on stocks that exhibit strong upward gaps in response to earnings beats. The key now is to monitor IBKR's ability to sustain its earnings-driven gap. If the stock maintains its momentum, it presents a compelling opportunity to ride its upward trajectory.
Please note that this may take beyond this week to come around to price targets.
United Natural Foods (UNFI)
Entry: Unlock
Price target: 36.00-37.00
Second PT: Unlock
It has been nearly a year since we initiated our first position in United Natural Foods (UNFI), and in that time, the stock has delivered exceptional performance, more than tripling in value and reaching a new 52-week high in recent months. Our initial analysis highlighted the stock's compelling valuation, and despite its remarkable rally, UNFI continues to trade at an arguably undervalued market capitalization.
A Refresher on United Natural Foods (UNFI)
UNFI is a leading distributor of natural, organic, and specialty foods, as well as non-food products. Their product offerings include frozen foods, perishables, bulk items, body care products, and supplements. Positioned within the consumer defensive sector, UNFI is particularly attractive during periods of heightened market uncertainty. In such environments, investors often gravitate toward companies like UNFI that provide essential goods, as these firms tend to be more resilient when market valuations seem stretched or volatility surges—both of which characterize the current economic climate.
The company has demonstrated consistent revenue growth over the years. In 2018, the company generated $10 billion in revenue, a figure that has since grown to $31 billion as of 2024. While revenue growth alone does not make a company a strong buy, UNFI’s market capitalization of just $1.74 billion creates a compelling valuation case. This translates to a price-to-sales (P/S) ratio of only 0.05x—a highly attractive metric for value-oriented investors seeking opportunities in undervalued stocks.
Areas for Improvement:
Despite its impressive revenue generation, UNFI has struggled to maintain consistent profitability. The company ended 2024 with a net loss, marking a return to negative earnings. However, projections for 2025 indicate a potential turnaround, with the company expected to achieve positive net income. If UNFI delivers on these projections, it would finally establish a positive price-to-earnings (P/E) ratio, addressing one of the company’s most significant areas of opportunity. Sustained profitability remains a key factor that could unlock additional value for investors and solidify UNFI’s position as an attractive long-term investment.
Please note that this may take beyond this week to come around to price targets.
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You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck! Let’s have a fantastic week.