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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. It is benefiting from higher demand and selling prices of titanium dioxide (TiO2).

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 B. 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.

An Outperformer

Shares of Kronos Worldwide are up 19% year to date against the 6.5% decline of its industry. It has also outperformed the S&P 500’s roughly 16.6% decline over the same period.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Estimates Going Up

Earnings estimate revisions have the greatest impact on stock prices. Over the past month, the Zacks Consensus Estimate for Kronos Worldwide for 2022 has increased around 64.8%. The consensus estimate for second-quarter 2022 has also been revised 54.5% upward over the same time frame.

Solid Growth Prospects

The Zacks Consensus Estimate for earnings for 2022 for Kronos Worldwide is currently pegged at $2.06, reflecting an expected year-over-year growth of 110.2%. Earnings are also expected to register a 131.8% growth in the second quarter.

Upbeat Prospects

Kronos Worldwide is poised to benefit from higher demand for TiO2. Higher demand in European and North American markets are likely to drive its TiO2 sales volumes. New product development, a solid customer base and effective marketing strategies are also working in the company’s favor.

The company is also gaining from an uptick in selling prices. Its average TiO2 selling prices rose 7% on a year-over-year basis in the first quarter of 2022. The company is expected to continue to benefit from higher TiO2 selling prices in the second quarter of 2022 on strong consumer demand.
 
Kronos Worldwide, on its first-quarter call, said that it expects global demand for consumer products to remain strong through the balance of 2022. Based on strong demand, TiO2 selling prices are projected to increase through the balance of the year. Kronos Worldwide also expects its sales and income from operations for 2022 to be higher on a year-over-year basis.

 

 

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Nutrien Ltd. (NTR - Free Report) and Albemarle Corporation (ALB - Free Report) .

Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 25% in a year.

Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 161.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 38.8% upward over the last 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 5.8%, on average. NTR has rallied 68% in a year.

Albemarle has a projected earnings growth rate of 175% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 85.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has rallied roughly 54% in a year. The company flaunts a Zacks Rank #1.

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