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Why You Should Add Kronos Worldwide (KRO) to Your Portfolio
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Kronos Worldwide, Inc.’s (KRO - Free Report) stock looks promising at the moment. The company’s shares have gained around 9% over the past three months. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Kronos Worldwide has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s take a look into the factors that make Kronos Worldwide an attractive choice for investors right now.
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Kronos Worldwide for the current year has increased around 18.3%. The consensus estimate for the next year has also been revised 28.9% upward over the same time frame.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Kronos Worldwide is currently pegged at 97 cents, reflecting an expected year-over-year growth of 76.4%. Moreover, earnings are expected to register a 28.9% growth in 2022.
Attractive Valuation
Valuation looks attractive as Kronos Worldwide’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Kronos Worldwide is currently trading at trailing 12-month EV/EBITDA multiple of 8.39, cheaper compared with the industry average of 9.04.
Strong Q3 & Upbeat Prospects
Kronos Worldwide saw higher profits in the third quarter of 2021, aided by higher sales volumes and increased average titanium dioxide (TiO2) selling prices that more than offset higher production costs including raw material and energy costs. Earning of 31 cents per share for the quarter trounced the Zacks Consensus Estimate of 24 cents. Net sales rose 20% year over year to $499.8 million, driven by higher sales volumes and higher average TiO2 selling prices.
Kronos Worldwide is poised to benefit from higher demand for TiO2. The company sees demand to grow 2-3% annually over the long term. Higher demand in European and North American markets are likely to drive its TiO2 sales volumes this year.
The company, in its third-quarter call, said that it expects global demand for consumer products to remain strong through the balance of 2021, positively impacting sales and production volumes. The company anticipates its sales and income from operations for 2021 to be higher on a year-over-year basis.
Kronos Worldwide is also benefiting from an uptick in selling prices as witnessed in the last reported quarter. Its average TiO2 selling prices rose 11% on a year-over-year basis in the quarter. It also expects TiO2 selling prices to rise through 2021 on strong consumer demand and rising costs.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.9% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 39% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 14.1% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 164% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 237% in a year.
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Why You Should Add Kronos Worldwide (KRO) to Your Portfolio
Kronos Worldwide, Inc.’s (KRO - Free Report) stock looks promising at the moment. The company’s shares have gained around 9% over the past three months. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Kronos Worldwide has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.
Let’s take a look into the factors that make Kronos Worldwide an attractive choice for investors right now.
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Kronos Worldwide for the current year has increased around 18.3%. The consensus estimate for the next year has also been revised 28.9% upward over the same time frame.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Kronos Worldwide is currently pegged at 97 cents, reflecting an expected year-over-year growth of 76.4%. Moreover, earnings are expected to register a 28.9% growth in 2022.
Attractive Valuation
Valuation looks attractive as Kronos Worldwide’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.
Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Kronos Worldwide is currently trading at trailing 12-month EV/EBITDA multiple of 8.39, cheaper compared with the industry average of 9.04.
Strong Q3 & Upbeat Prospects
Kronos Worldwide saw higher profits in the third quarter of 2021, aided by higher sales volumes and increased average titanium dioxide (TiO2) selling prices that more than offset higher production costs including raw material and energy costs. Earning of 31 cents per share for the quarter trounced the Zacks Consensus Estimate of 24 cents. Net sales rose 20% year over year to $499.8 million, driven by higher sales volumes and higher average TiO2 selling prices.
Kronos Worldwide is poised to benefit from higher demand for TiO2. The company sees demand to grow 2-3% annually over the long term. Higher demand in European and North American markets are likely to drive its TiO2 sales volumes this year.
The company, in its third-quarter call, said that it expects global demand for consumer products to remain strong through the balance of 2021, positively impacting sales and production volumes. The company anticipates its sales and income from operations for 2021 to be higher on a year-over-year basis.
Kronos Worldwide is also benefiting from an uptick in selling prices as witnessed in the last reported quarter. Its average TiO2 selling prices rose 11% on a year-over-year basis in the quarter. It also expects TiO2 selling prices to rise through 2021 on strong consumer demand and rising costs.
Kronos Worldwide Inc Price and Consensus
Kronos Worldwide Inc price-consensus-chart | Kronos Worldwide Inc Quote
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Intrepid Potash, Inc. (IPI - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.9% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 39% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 14.1% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 164% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 237% in a year.