Group 1: Company Performance - Kronos Worldwide, Inc. (KRO) shares have increased by 35.2% year to date, outperforming the industry's decline of 2% and the S&P 500's rise of approximately 13.9% during the same period [1] - Earnings estimates for Kronos have risen significantly, with the Zacks Consensus Estimate for 2024 increasing by around 157.6% [3][11] - The consensus estimate for earnings in 2024 is currently pegged at 85 cents, indicating an expected year-over-year growth of 297.7% [7] Group 2: Market Demand and Production - Kronos is experiencing higher demand for titanium dioxide (TiO2), which is driving sales volumes, with TiO2 consumption increasing at a compound annual growth rate of about 2% since 2000 [2] - The company has increased its production rates in line with current and expected near-term demand improvements, expecting production rates for the remainder of 2024 to exceed those of 2023 [6][10] - Kronos anticipates improved margins in 2024 due to reduced energy costs, cost-cutting initiatives, and higher selling prices [14] Group 3: Industry Context - Major markets for TiO2 include Western Europe and North America, which account for approximately 14% and 15% of global consumption, respectively [2] - Other top-ranked stocks in the basic materials sector include Carpenter Technology Corporation (CRS), Axalta Coating Systems Ltd. (AXTA), and ATI Inc. (ATI) [4]
Kronos Worldwide (KRO) Up 35% YTD: What's Driving the Rally?