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Kronos Worldwide Hits a New 52-Week High on Solid View

FMC KRO IPHS CC

Trades from $3

Shares of Kronos Worldwide, Inc. (KRO - Free Report) reached a new 52-week high of $12.31 on Nov 21, before closing the trading session slightly lower at $12.05. This apex improved upon the last 52-week high of $12.00 on Nov 15.

As of Nov 21, the stock yielded a year-to-date return of 128.1%. The trading volume for the session was 0.44 million shares. Earnings estimate revisions for 2016 and 2017 indicate Kronos Worldwide’s potential for further price appreciation.

Growth Drivers

Kronos Worldwide impressed investors with its financial performance, recording better-than-expected results for third-quarter 2016 on Nov 7. The company’s earnings of 19 cents per share exceeded the Zacks Consensus Estimate of 9 cents by 111.11%. Further, the figure improved upon a loss per share of 10 cents in the year-ago quarter. Also, the top line of $356.1 million increased 6% year over year.

For 2016, Kronos Worldwide anticipates to align its production volumes of titanium dioxide pigments (TiO2) according to the demand in the current and near term. The company anticipates that production volumes in its factories will be higher than the level achieved in 2015, while predicts year-over-year improvements for sales volumes as well. Cost of sales per metric ton of TiO2 is expected to be lower year over year on the back of cost-reduction efforts and savings from workforce reduction.

In addition, Kronos Worldwide remains committed toward rewarding its shareholders handsomely through dividend payments, reflecting its solid cash position.

We believe that impressive results and outlook have created positive momentum for Kronos Worldwide, driving the company’s share price higher by 50.4% since Nov 7.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Kronos Worldwide grew 185.7% to 20 cents per share for 2016 and 20% to 30 cents per share for 2017. These estimates represent year-over-year growth of 253.9% for 2016 and 48.8% for 2017. Also, the company has an Earnings ESP of +35% for 2016 and +33.33% for 2017.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

KRONOS WORLDWD Price and Consensus

 

KRONOS WORLDWD Price and Consensus | KRONOS WORLDWD Quote

With a market capitalization of $1.4 billion, Kronos Worldwide, Inc. currently sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the diversified chemical industry include The Chemours Company (CC - Free Report) , FMC Corp. (FMC - Free Report) and Innophos Holdings Inc. (IPHS - Free Report) . Each of the stocks sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Chemours Company has an average positive earnings surprise of 153.83% in the last four quarters. Also, the earnings estimates for 2016 and 2017 have been revised upward over the past 60 days.

FMC Corp’s earnings estimates for 2016 and 2017 have been revised upward in the last 60 days. The average earnings surprise for the last four quarters was a positive 13.07%.
 
Innophos Holdings reported better-than-expected results in the last quarter, with a positive earnings surprise of 13.64%. Also, earnings expectations for 2016 and 2017 have improved over the past 60 days.

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