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Kronos Worldwide's (KRO) Shares Pop 30% in 3 Months: Here's Why
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Kronos Worldwide, Inc.’s (KRO - Free Report) shares have gained 30.1% over the past three months. The company, sporting a Zacks Rank #1 (Strong Buy), has outperformed its industry’s rise of 12.1% over the same time frame. It has also topped the S&P 500’s roughly 5.2% decline over the same period.
Let’s take a look into the factors that are driving this leading producer and marketer of titanium dioxide (TiO2).
Image Source: Zacks Investment Research
What’s Working in KRO’s Favor?
Better-than-expected earnings performance in the first quarter and upbeat prospects have contributed to the rally in the company's shares. Kronos Worldwide’s earnings of 50 cents per share for the first quarter jumped from 17 cents in the year-ago quarter and trounced the Zacks Consensus Estimate of 28 cents. The bottom line in the reported quarter was driven by higher income from operations resulting from increased average TiO2 selling prices.
The company’s revenues climbed 21% year over year to $562.9 million, driven by higher average TiO2 selling prices and volumes. It also topped the Zacks Consensus Estimate of $504 million.
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.
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. The company is expected to continue to benefit from higher TiO2 selling prices in the second quarter of 2022 on strong consumer demand.
Earnings estimates for Kronos Worldwide have also been going up over the past two months, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2022 has increased around 60.9%. The consensus estimate for the second quarter of 2022 has also been revised 54.5% upward over the same time frame.
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , Albemarle Corporation (ALB - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 163.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 27.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 51% in a year.
Albemarle has a projected earnings growth rate of 203.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 105.2% 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 58% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 19% over a year.
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Kronos Worldwide's (KRO) Shares Pop 30% in 3 Months: Here's Why
Kronos Worldwide, Inc.’s (KRO - Free Report) shares have gained 30.1% over the past three months. The company, sporting a Zacks Rank #1 (Strong Buy), has outperformed its industry’s rise of 12.1% over the same time frame. It has also topped the S&P 500’s roughly 5.2% decline over the same period.
Let’s take a look into the factors that are driving this leading producer and marketer of titanium dioxide (TiO2).
Image Source: Zacks Investment Research
What’s Working in KRO’s Favor?
Better-than-expected earnings performance in the first quarter and upbeat prospects have contributed to the rally in the company's shares. Kronos Worldwide’s earnings of 50 cents per share for the first quarter jumped from 17 cents in the year-ago quarter and trounced the Zacks Consensus Estimate of 28 cents. The bottom line in the reported quarter was driven by higher income from operations resulting from increased average TiO2 selling prices.
The company’s revenues climbed 21% year over year to $562.9 million, driven by higher average TiO2 selling prices and volumes. It also topped the Zacks Consensus Estimate of $504 million.
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.
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. The company is expected to continue to benefit from higher TiO2 selling prices in the second quarter of 2022 on strong consumer demand.
Earnings estimates for Kronos Worldwide have also been going up over the past two months, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2022 has increased around 60.9%. The consensus estimate for the second quarter of 2022 has also been revised 54.5% upward over the same time frame.
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) , Albemarle Corporation (ALB - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien, sporting a Zacks Rank #1, has an expected earnings growth rate of 163.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 27.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 51% in a year.
Albemarle has a projected earnings growth rate of 203.7% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 105.2% 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 58% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 5.2% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 19% over a year.