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Kronos Worldwide (KRO) Soars 6.5%: Is Further Upside Left in the Stock?

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Kronos Worldwide (KRO - Free Report) shares soared 6.5% in the last trading session to close at $11.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.2% gain over the past four weeks.

KRO’s rally appears to be driven by higher expected demand for titanium dioxide. The company is also expected to benefit from easing pricing pressure this year. Lower energy costs along with KRO’s cost-reduction initiatives are also expected to result in improved margins in 2024.

This maker of titanium dioxide pigments is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +53.9%. Revenues are expected to be $477.23 million, up 12% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kronos Worldwide is a member of the Zacks Chemical - Diversified industry. One other stock in the same industry, Huntsman (HUN - Free Report) , finished the last trading session 1.6% lower at $26.16. HUN has returned 10.5% over the past month.

Huntsman's consensus EPS estimate for the upcoming report has changed -154.3% over the past month to -$0.05. Compared to the company's year-ago EPS, this represents a change of -125%. Huntsman currently boasts a Zacks Rank of #4 (Sell).


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