Stocks to Buy in October. Part II.

October 5, 2025

Mosaic Company (MOS)

Entry: Unlock

Price target: 43.00-45.00

Second PT: Unlock

Finding attractive valuations is getting harder in a market where virtually everything is trading at extreme ratios, but there are still hidden gems for those willing to look outside the popular names and into the “boring” ones. Mosaic Company appears to be one of those hidden gems, operating in a field often overlooked by investors, especially retail buyers.

Mosaic Company is a producer of concentrated phosphate and potash crop nutrients. Their key operations include mining and processing phosphate rock and potash to supply global farming needs, focused on supporting crop nutrition worldwide. Besides fertilizers, they produce phosphate based additives for animal feed. Sales volumes for the company’s two primary products are expected to grow by more than 30% in the coming two years, which is projected to reflect directly into their earnings. Current forecasts show that earnings will double over the next few years, and favorable markets conditions in their primary two markets (U.S. and Brazil) support that growth.

The stock’s performance has been extremely weak for years now, but outlook on fertilizer demand and the company’s efforts to cut costs is signaling a turnaround. Last quarter was its first positive revenue growth quarter in more than two years +6.7% to $3.01B, and net income was significantly higher than recent history at $410M. Profit margins appear to be improving, leaving them at a price to earnings ratio of 11.8x, far lower than the average S&P 500’s 30x. Agricultural companies do typically trade at lower P/E ratios, but there are other reasons to believe this is an undervalued name. The company’s balance sheet alone reflects $24.3B in assets and $11.7B in liabilities, leaving them with +$12.6B in positive equity, not bad for a company trading at a market cap of $11B.

Looking ahead, we want to see $MOS continue posting revenue growth to support the stock’s recovery. Maintaining strong profits is important in particular, especially to help them grow their free cash flow, a key metric watched by investors. The company is not yet spectacular on its financials, but there are many reasons to believe it is undervalued and is a strong turnaround stock.

Please note that this may take longer than one week to come around to targets and we may change our entry / exit levels if necessary. We'll be updating the stock as needed for our Hyper Stocks Pro members. Wanna see real-time market updates? Learn more here.

NextEra Energy (NEE)

Entry: Unlock

Price target: 87.00-88.00

Second PT: Unlock

We’ve already included another energy name in this week’s watchlist, but we’re adding NextEra Energy (NEE) as well because of their strong commitment to expanding renewable capacity. Although utilities are historically seen as “boring” investments due to modest growth rates, times are exciting for these companies again thanks to the boom in artificial intelligence and global electrification.

One particular reason we’re drawn to NextEra is their $50 billion commitment to battery storage buildout between 2025 and 2029. Battery storage systems are one of the fastest growing segments in the global energy market. As wind and solar capacity expands (which are part of NEE’s focus), battery storage is the critical link that allows utilities to capture excess energy and distribute it when demand is high, basically turning it into a reliable source of power.

Another reason we’ve added NextEra to our watchlist is because interest rates have been one of the main factors holding the stock back. Utilities are capital intensive businesses, and higher borrowing costs weigh on both their growth investments and investor demand for dividend paying stocks. With rate cuts expected over the next year, NEE could be well positioned for a re-rating as financing costs ease and investors rotate back into defensive, income generating names.

All in all, NextEra combines utility stability with long term growth exposure to renewables, battery storage, and the broader electrification trend. If interest rates come down, the stock could have strong upside from current levels, making this a timely addition to our watchlist.

Select Sector Health Care SPDR ETF (XLV)

Entry: Unlock

Price target: 159.00-160.00

Second PT: Unlock

Healthcare and pharmaceutical companies have been among the biggest laggards of this year’s market rally, but that narrative may be shifting thanks to the administration’s latest push to boost American manufacturing. Policies aimed at on-shoring production are likely to come with looser regulation, grants, and subsidies for top players willing to invest in U.S. facilities.

A recent deal between Pfizer and the Trump administration has sparked excitement in the sector. The agreement exempts Pfizer from Trump’s proposed 100% tariffs on foreign made branded drugs in exchange for commitments to lower certain drug prices and invest more heavily in U.S. manufacturing. Investors are interpreting this as a potential template for other pharmaceutical firms, which could reduce uncertainty around drug pricing and import tariffs across the sector.

Because there’s no clear winner yet on which companies will secure the largest benefits or strike the most favorable deals, we’re not focusing on a single stock. Instead, our attention is on the XLV ETF, which provides exposure to a basket of top healthcare names like Eli Lilly (LLY), UnitedHealth Group (UNH), and Johnson & Johnson (JNJ). This diversified approach allows investors to benefit from sector wide tailwinds without taking on the risk of betting on one company.

The “defensive play” angle is key. As valuations in technology and other growth sectors surge to record highs, investors will inevitably look to rotate into industries that provide stability, dividends, and lower volatility. Healthcare fits that profile well, offering both resilience during downturns and the potential for upside as regulatory clarity improves and domestic manufacturing ramps up.

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