Tronox (TROX) shares ended the last trading session 7.6% higher at $13.88. The jump came on impressive volume with a higher than average number of shares changing hands in the session. This compares to the stock’s 9.7% loss over the past four weeks.
TROX’s rally appears to be driven by the optimism of improved demand for titanium dioxide. The company is expected to benefit from improved pigment volumes as customers have largely completed de-stocking. Zircon volumes are also expected to increase in line with demand recovery.
This titanium ore and titanium dioxide producer is expected to post a quarterly loss of $0.05 per share in its next report, which represents a year-over-year increase of +70.6%. Revenues are expected to be $666.31 million, up 2.7% from the year-quarter.
While earnings and revenue growth expectations are important to assess the potential strength in stocks, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock prices.
For Tronox, the consensus EPS estimate for the quarter remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher without some trend in earnings estimate revisions. So, be sure to keep an eye on TROX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Tronox is a member of the Zacks Chemical – Diversified industry. One other supply in the same industry, Stepan Co. (SCL), ended the last trading session 0.2% lower at $92.81. SCL returned -2.9% over the past month.
For Stepan Co.
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Tronox Holdings PLC (TROX): Free Analysis Report
Stepan Company (SCL): Free Analysis Report
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