Kronos Worldwide (KRO) Surges 6.7%: Is This an Indication of Further Gains?

by Zacks Equity Research · May 9, 2024

Kronos Worldwide (KRO) shares ended the last trading session 6.7% higher at $18.86. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 6% loss over the past four weeks.

KRO’s rally appears to be driven by higher expected demand for titanium dioxide (TiO2). Higher demand in European and North American markets is likely to drive its TiO2 sales volumes. The company is also benefiting from higher TiO2 selling prices on strong consumer demand.

This maker of titanium dioxide pigments is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +131.8%. Revenues are expected to be $541.71 million, up 13.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Kronos Worldwide, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on KRO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Kronos Worldwide belongs to the Zacks Chemical – Diversified industry. Another stock from the same industry, LyondellBasell (LYB), closed the last trading session 5.6% higher at $89.24. Over the past month, LYB has returned -24.2%.

For LyondellBasell , the consensus EPS estimate for the upcoming report has changed +7.2% over the past month to $4.94. This represents a change of -19.4% from what the company reported a year ago. LyondellBasell currently has a Zacks Rank of #3 (Hold).