Kronos Worldwide, Inc. KRO is expected to benefit from long-term titanium dioxide (TiO2) demand growth. Cost-reduction and pricing initiatives are also expected to support margins.
We are positive about KRO’s prospects and believe that the time is right for you to add the stock to your portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s take a look into the factors that make KRO stock a compelling choice for investors right now.
Kronos Worldwide’s Stock Outperforms Industry
KRO has outperformed the industry it belongs to so far this year. The company’s shares have rallied 33% compared with a 17.9% increase of the Zacks Chemical - Diversified industry.
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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 0.88. KRO currently has a Value Score of B.
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Healthy Growth Prospects for Kronos Worldwide
The Zacks Consensus Estimate for earnings for 2026 for Kronos Worldwide is currently pegged at a loss of 33 cents, reflecting an expected year-over-year growth of 65.6%. The same for 2027 is pinned at 17 cents, suggesting a year-over-year 151.5% growth.
Higher TiO2 Volumes, Cost & Pricing Actions Aid KRO
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 expect TiO2 demand to grow by 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 and 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 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 Zacks Rank & Other Key Picks
KRO currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are CSW Industrials, Inc. CSW, Albemarle Corporation ALB and Perimeter Solutions, Inc. PRM. CSW, ALB and PRM carry a Zacks Rank #1, each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. CSW’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The consensus estimate for Albemarle’s current-year earnings is pegged at $13.15 per share, indicating a 1,764.6% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
The Zacks Consensus Estimate for Perimeter Solutions’ current-year earnings stands at $1.78 per share, implying a 32.8% year-over-year increase. The Zacks Consensus Estimate for PRM’s current-year earnings has been revised 21.1% higher over the past 60 days.
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Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Albemarle Corporation (ALB): Free Stock Analysis Report
Perimeter Solutions, SA (PRM): Free Stock Analysis Report
CSW Industrials, Inc. (CSW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).