Kronos Worldwide (KRO) Moves 6.3% Higher: Will This Strength Last?
Kronos Worldwide (KRO) shares rallied 6.3% in the last trading session to close at $8.58. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.4% loss over the past four weeks.
KRO’s gains reflect upside potential driven by long-term TiO2 demand, share gains across major markets and an expanding international presence, supported by changing supply conditions, logistic constraints and trade measures. The company’s restructuring initiatives, lower production costs and improved pricing are boosting margins and profitability, while rising sales volumes and higher sales guidance reinforce confidence in consistent earnings growth.
This maker of titanium dioxide pigments is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +188.9%. Revenues are expected to be $548.71 million, up 20.1% 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 been revised 134.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 #2 (Buy). 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, Air Products and Chemicals (APD), finished the last trading session 3% higher at $287.86. APD has returned -8.7% over the past month.
For Air Products and Chemicals, the consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $3.6. This represents a change of +6.2% from what the company reported a year ago. Air Products and Chemicals currently has a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
