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Is Kronos Worldwide Stock Still a Buy After a 36% YTD Rally?
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Key Takeaways
Kronos Worldwide is backed by long-term TiO2 demand growth and margin improvement initiatives.
KRO expects margin gains from pricing, cost actions and lower-cost production in 2026.
KRO trades below the industry's forward P/S ratio and maintains liquidity to fund growth and returns.
Kronos Worldwide, Inc.’s (KRO - Free Report) shares have gained 36.2% this year, outperforming the Zacks Chemicals Diversified industry’s increase of 17.6% and the S&P 500’s rise of 9.4%. The company is well-positioned to benefit from long-term titanium dioxide (TiO2) demand growth. Cost-reduction and pricing initiatives are also expected to support its margins.
KRO’s peers, The Chemours Company (CC - Free Report) and Tronox Holdings plc (TROX - Free Report) , have gained 40.9% and 40%, respectively, over the same period.
KRO’s YTD Price Performance
Image Source: Zacks Investment Research
Technical indicators show that KRO has been trading above the 200-day simple moving average (SMA) since March 23, 2025. The stock is currently trading below its 50-day SMA. Following a golden crossover on March 9, 2026, the 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend.
Kronos Trades Below 50-Day SMA
Image Source: Zacks Investment Research
Is the time right to buy KRO’s shares for potential upside? Let’s take a look at the stock’s fundamentals.
Demand Tailwinds and Cost Discipline Fuel KRO’s Momentum
Kronos is expected to benefit from favorable long-term demand fundamentals across key end markets. The company continues to see growth opportunities supported by global industrial activity, infrastructure development and rising demand across developing regions. Expanding consumption trends in emerging markets, along with steady long-term growth in coatings, plastics and construction applications, are likely to support demand. KRO expects TiO2 demand to grow 2-3% annually over the long term.
KRO’s TiO2 sales volumes rose roughly 4% year over year to 142 thousand metric tons in the first quarter, supported by higher volumes in North American, Latin American and export markets. This was partly offset by the weakening of demand in Europe despite the company gaining market share in that region.
Kronos Worldwide is also taking actions to reduce costs as well as align production and inventories to expected demand levels, which are expected to support its margins. Its cost actions and process improvement initiatives are aimed at improving the long-term cost structure.
KRO has emphasized continued execution on pricing and cost initiatives as the key operational priorities, following the restructuring actions taken late in 2025. It expects additional price increases as selling prices remain below the 2025 levels.
Kronos expects gross margin to improve as higher-cost inventory produced in late 2025 works through the system and it realizes the benefit of lower-cost production in 2026, though it is beginning to see higher shipping and production costs tied to Middle East-related supply disruptions and higher energy and raw material costs, particularly in Europe.
KRO’s Adequate Liquidity Support Investment & Returns
Kronos has sufficient liquidity, which allows it to fund investment in capital projects, meet debt obligations and drive shareholder value. It is actively managing working capital to drive cash flow and maintain financial flexibility. At the end of the first quarter, KRO had cash, cash equivalents and restricted cash on hand of $33.6 million, and expects its cash position to improve over the remainder of 2026. It had total availability for borrowing of roughly $287 million under its revolving credit facility at the end of the quarter. The company plans capital spending of around $60 million in 2026, mainly to maintain and improve its existing facilities.
KRO paid dividends worth $23 million to its shareholders in 2025 and $5.8 million in the first quarter. It offers a dividend yield of 3.3% at the current stock price.
What KRO’s Earnings Estimates Indicate
The Zacks Consensus Estimate for 2026 and 2027 has been stable over the past 60 days.
The Zacks Consensus Estimate for 2026 is currently pegged at a loss of 33 cents, suggesting year-over-year improvement of 65.6%. Earnings are expected to register roughly 151.5% growth in 2027.
Image Source: Zacks Investment Research
KRO’s Valuation Looks Attractive
KRO’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential. The company is currently trading at a forward price-to-sales ratio of 0.34, below the industry’s 0.91. It is trading at a premium to Tronox Holdings and a discount to Chemours. Kronos currently has a Value Score of B. Chemours has a Value Score of A, while Tronox Holdings has a Value Score of F.
KRO’s P/S F12M Vs. Industry, CC and TROX
Image Source: Zacks Investment Research
How Should Investors Play the KRO Stock?
Kronos Worldwide remains well positioned for long-term growth, supported by healthy TiO2 demand across major markets. Rising sales volumes, disciplined pricing actions and ongoing cost-reduction initiatives are expected to strengthen margins as lower-cost production flows through operations. The company also benefits from adequate liquidity, financial flexibility and a shareholder-friendly capital allocation strategy. Healthy earnings growth prospects and an attractive valuation further enhance its investment appeal. With favorable long-term demand drivers and operational improvements in place, this Zacks Rank #2 (Buy) stock appears well positioned and is worth considering for investors seeking upside potential.
View the Zacks #1 Rank List
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Is Kronos Worldwide Stock Still a Buy After a 36% YTD Rally?
Key Takeaways
Kronos Worldwide, Inc.’s (KRO - Free Report) shares have gained 36.2% this year, outperforming the Zacks Chemicals Diversified industry’s increase of 17.6% and the S&P 500’s rise of 9.4%. The company is well-positioned to benefit from long-term titanium dioxide (TiO2) demand growth. Cost-reduction and pricing initiatives are also expected to support its margins.
KRO’s peers, The Chemours Company (CC - Free Report) and Tronox Holdings plc (TROX - Free Report) , have gained 40.9% and 40%, respectively, over the same period.
KRO’s YTD Price Performance
Technical indicators show that KRO has been trading above the 200-day simple moving average (SMA) since March 23, 2025. The stock is currently trading below its 50-day SMA. Following a golden crossover on March 9, 2026, the 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend.
Kronos Trades Below 50-Day SMA
Is the time right to buy KRO’s shares for potential upside? Let’s take a look at the stock’s fundamentals.
Demand Tailwinds and Cost Discipline Fuel KRO’s Momentum
Kronos is expected to benefit from favorable long-term demand fundamentals across key end markets. The company continues to see growth opportunities supported by global industrial activity, infrastructure development and rising demand across developing regions. Expanding consumption trends in emerging markets, along with steady long-term growth in coatings, plastics and construction applications, are likely to support demand. KRO expects TiO2 demand to grow 2-3% annually over the long term.
KRO’s TiO2 sales volumes rose roughly 4% year over year to 142 thousand metric tons in the first quarter, supported by higher volumes in North American, Latin American and export markets. This was partly offset by the weakening of demand in Europe despite the company gaining market share in that region.
Kronos Worldwide is also taking actions to reduce costs as well as align production and inventories to expected demand levels, which are expected to support its margins. Its cost actions and process improvement initiatives are aimed at improving the long-term cost structure.
KRO has emphasized continued execution on pricing and cost initiatives as the key operational priorities, following the restructuring actions taken late in 2025. It expects additional price increases as selling prices remain below the 2025 levels.
Kronos expects gross margin to improve as higher-cost inventory produced in late 2025 works through the system and it realizes the benefit of lower-cost production in 2026, though it is beginning to see higher shipping and production costs tied to Middle East-related supply disruptions and higher energy and raw material costs, particularly in Europe.
KRO’s Adequate Liquidity Support Investment & Returns
Kronos has sufficient liquidity, which allows it to fund investment in capital projects, meet debt obligations and drive shareholder value. It is actively managing working capital to drive cash flow and maintain financial flexibility. At the end of the first quarter, KRO had cash, cash equivalents and restricted cash on hand of $33.6 million, and expects its cash position to improve over the remainder of 2026. It had total availability for borrowing of roughly $287 million under its revolving credit facility at the end of the quarter. The company plans capital spending of around $60 million in 2026, mainly to maintain and improve its existing facilities.
KRO paid dividends worth $23 million to its shareholders in 2025 and $5.8 million in the first quarter. It offers a dividend yield of 3.3% at the current stock price.
What KRO’s Earnings Estimates Indicate
The Zacks Consensus Estimate for 2026 and 2027 has been stable over the past 60 days.
The Zacks Consensus Estimate for 2026 is currently pegged at a loss of 33 cents, suggesting year-over-year improvement of 65.6%. Earnings are expected to register roughly 151.5% growth in 2027.
KRO’s Valuation Looks Attractive
KRO’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential. The company is currently trading at a forward price-to-sales ratio of 0.34, below the industry’s 0.91. It is trading at a premium to Tronox Holdings and a discount to Chemours. Kronos currently has a Value Score of B. Chemours has a Value Score of A, while Tronox Holdings has a Value Score of F.
KRO’s P/S F12M Vs. Industry, CC and TROX
How Should Investors Play the KRO Stock?
Kronos Worldwide remains well positioned for long-term growth, supported by healthy TiO2 demand across major markets. Rising sales volumes, disciplined pricing actions and ongoing cost-reduction initiatives are expected to strengthen margins as lower-cost production flows through operations. The company also benefits from adequate liquidity, financial flexibility and a shareholder-friendly capital allocation strategy. Healthy earnings growth prospects and an attractive valuation further enhance its investment appeal. With favorable long-term demand drivers and operational improvements in place, this Zacks Rank #2 (Buy) stock appears well positioned and is worth considering for investors seeking upside potential.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.