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Here's Why You Should Buy Kronos Worldwide (KRO) Stock Right Now
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Kronos Worldwide, Inc.’s (KRO - Free Report) shares have popped around 15% over the past three months. It is expected to gain from higher demand for titanium dioxide (TiO2) and easing pricing pressure this year. Cost-reduction initiatives are also expected to support margins.
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.
Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock an attractive choice for investors right now.
An Outperformer
KRO has outperformed the industry it belongs to over a year. The company’s shares have rallied 28% compared with a 5.6% decline recorded by the industry.
Image Source: Zacks Investment Research
Strong Growth Prospects
The Zacks Consensus Estimate for earnings for 2024 for Kronos Worldwide is currently pegged at 33 cents, reflecting an expected year-over-year growth of 176.7%. Moreover, earnings are expected to register a 125.8% growth in 2025.
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for KRO for 2024 has increased around 73.7%. The consensus estimate for 2025 has also been revised 11.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Higher TiO2 Demand, Cost Actions Aid KRO
Kronos Worldwide is expected to gain from higher demand for TiO2. Per the company, TiO2 consumption has increased at a compound annual growth rate of around 2% since 2000. Western Europe and North America account for roughly 14% and 15% of global TiO2 consumption, respectively. These regions are expected to continue to be the biggest consumers of TiO2. Moreover, markets for TiO2 are growing in South America, Eastern Europe, the Asia Pacific region and China.
The company envisions consumer demand to improve in 2024. It believes customer destocking of TiO2 is largely complete and customer inventories are historically low. KRO also sees the pricing pressure to be somewhat eased this year. It expects sales volumes to rise on a year-over-year basis in 2024.
Kronos has increased its production rates in sync with current and expected near-term demand improvement. It expects its production volumes in 2024 will be higher than the level witnessed in 2023.
KRO implemented cost-cutting measures, including targeted workforce reductions and process improvement initiatives, to improve its cost structure in 2023. The company expects reduced energy costs along with its cost-reduction initiatives to result in improved margins on a year-over-year basis in 2024.
Other top-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Denison Mines Corp. (DNN - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 68% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines carries a Zacks Rank #1. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 79% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.
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Here's Why You Should Buy Kronos Worldwide (KRO) Stock Right Now
Kronos Worldwide, Inc.’s (KRO - Free Report) shares have popped around 15% over the past three months. It is expected to gain from higher demand for titanium dioxide (TiO2) and easing pricing pressure this year. Cost-reduction initiatives are also expected to support margins.
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.
Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock an attractive choice for investors right now.
An Outperformer
KRO has outperformed the industry it belongs to over a year. The company’s shares have rallied 28% compared with a 5.6% decline recorded by the industry.
Image Source: Zacks Investment Research
Strong Growth Prospects
The Zacks Consensus Estimate for earnings for 2024 for Kronos Worldwide is currently pegged at 33 cents, reflecting an expected year-over-year growth of 176.7%. Moreover, earnings are expected to register a 125.8% growth in 2025.
Estimates Northbound
Over the past two months, the Zacks Consensus Estimate for KRO for 2024 has increased around 73.7%. The consensus estimate for 2025 has also been revised 11.9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Higher TiO2 Demand, Cost Actions Aid KRO
Kronos Worldwide is expected to gain from higher demand for TiO2. Per the company, TiO2 consumption has increased at a compound annual growth rate of around 2% since 2000. Western Europe and North America account for roughly 14% and 15% of global TiO2 consumption, respectively. These regions are expected to continue to be the biggest consumers of TiO2. Moreover, markets for TiO2 are growing in South America, Eastern Europe, the Asia Pacific region and China.
The company envisions consumer demand to improve in 2024. It believes customer destocking of TiO2 is largely complete and customer inventories are historically low. KRO also sees the pricing pressure to be somewhat eased this year. It expects sales volumes to rise on a year-over-year basis in 2024.
Kronos has increased its production rates in sync with current and expected near-term demand improvement. It expects its production volumes in 2024 will be higher than the level witnessed in 2023.
KRO implemented cost-cutting measures, including targeted workforce reductions and process improvement initiatives, to improve its cost structure in 2023. The company expects reduced energy costs along with its cost-reduction initiatives to result in improved margins on a year-over-year basis in 2024.
Kronos Worldwide Inc Price and Consensus
Kronos Worldwide Inc price-consensus-chart | Kronos Worldwide Inc Quote
Stocks to Consider
Other top-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Denison Mines Corp. (DNN - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 68% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines carries a Zacks Rank #1. DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared roughly 79% in the past year.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.