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Kronos (KRO) Scales New 52-Week High on Bright Prospects


Shares of chemicals maker, Kronos Worldwide, Inc. KRO, scaled a fresh 52-week high of $20.64 yesterday, before pulling back to eventually close the day at $20.47.

Kronos has a market cap of roughly $2.4 billion. Average volume of shares traded in the last three months is around 498.7k.

Kronos has significantly outperformed the Zacks categorized Chemicals-Diversified industry over the last one year, partly reflecting its forecast-topping earnings performance. The company’s shares have returned a whopping 249.9% over this period, compared with roughly 19.9% gains recorded by the industry.

Driving Factors

Kronos swung to a profit of $36.8 million or 32 cents per share in first-quarter 2017 from a loss of $3.8 million or 3 cents per share a year ago. Earnings per share topped the Zacks Consensus Estimate of 22 cents.

Kronos also has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in three of the trailing four quarters. The company delivered a positive average earnings surprise of around 64.1% in the said time frame.

Kronos provided an upbeat guidance for 2017. The company expects production volumes to be higher in 2017 on a year-over-year basis as production rates this year will be favorably impacted by the implementation of certain productivity-enhancing projects at some facilities. It also sees healthy demand for its titanium dioxide (TiO2) products across some of its primary markets.

Kronos also expects income from operations in 2017 to be higher on a year-over-year basis, due to an expected increase in average selling prices and the favorable impact of anticipated higher production volumes in 2017.

Kronos Worldwide Inc Price and Consensus

Kronos Worldwide Inc Price and Consensus | Kronos Worldwide Inc Quote

Zacks Rank & Key Picks

Kronos currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic materials space are The Sherwin-Williams Company SHW, Ternium S.A. TX and Hitachi Chemical Company, Ltd. HCHMY. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Sherwin-Williams has an expected long-term earnings growth rate of 11.4%.

Ternium S.A. has an expected long-term earnings growth rate of 18.4%.

Hitachi Chemical has an expected long-term earnings growth rate of 5%.

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