11 Best Small Cap Chemical Stocks to Buy According to Hedge Funds

8. Kronos Worldwide Inc. (NYSE:KRO)

Market Capitalization: $1.2 Billion

Number of Hedge Fund Holders: 18

Kronos Worldwide Inc. (NYSE:KRO) is a chemical company that specializes in producing and marketing value-added titanium dioxide pigments, which are essential for adding whiteness, brightness, and opacity to a variety of products. Titanium dioxide (TiO2) is widely used in industries such as paints, coatings, plastics, cosmetics, and pharmaceuticals.

In the third quarter of 2024, Kronos Worldwide Inc. (NYSE:KRO) reported net sales of $484.7 million, an increase of $87.8 million or 22% compared to the same quarter in 2023. Kronos Worldwide Inc. (NYSE:KRO) achieved a net income of $71.8 million, translating to $0.62 per share, a significant turnaround from a net loss of $20.4 million in the prior year. This improvement is attributed to higher sales and production volumes, along with reduced production costs for energy and raw materials.

The company has seen increased demand across all major markets in the first nine months of 2024, contributing to improved profitability. A key strategic move was the acquisition of the remaining 50% interest in Louisiana Pigment Company, effective July 16, 2024, making it a wholly-owned subsidiary. This acquisition added approximately 13,000 metric tons of production capacity in the third quarter. Additionally, during the third quarter, Kronos Worldwide Inc. (NYSE:KRO) closed its sulfate process line in Canada, which is expected to enhance long-term cost efficiency despite incurring short-term charges.

KRO ranks among the best chemical stocks to buy. With strong financial performance, strategic acquisitions, and ongoing improvements in production efficiency, Kronos Worldwide Inc. (NYSE:KRO) is well-positioned for future growth.