There aren't many companies as diversified asBall Corp. (
), whose products range from tin cans to satellites.
Ball started out in 1880 as a maker of canisters for paints
and other products, and later started manufacturing the
home-canning jars that became one of its best-known products.
While it no longer makes canning jars, Ball has mushroomed into
Today, the company is a major beverage-can maker, a segment
that accounted for more than 70% of first-quarter sales. Its
European can and packaging division had the best sales gain in
Q1, up 12%.
The aerospace business accounted for $220.7 million in
revenue, or 11% of the $2 billion in first-quarter sales. But
sales in that division fell nearly 5% over the year-ago quarter.
Some of its projects are the planet-hunting Kepler Mission, and a
contract awarded last week to provide the U.S. Navy with the
Stalker, a long-range detection system.
"Ball Corporation will continue to benefit from product
launches and expansion in emerging markets," Zacks Equity
Research noted after the company announced results.
"Moreover, the company believes that there is growth potential
in many of its segments. Metal beverage packaging, Americas &
Asia will benefit from the Alagoinhas plant's third production
line, which remains on track. However, uncertainty in the global
economic scenario remains a headwind."
Ball pays a quarterly dividend of 13 cents a share, for an
annualized yield of about 1%.
IBD gives the stock an Earnings Stability Factor of 3 on a
scale of 0 (calm) to 99 (wild).
Earnings excluding extraordinary items increased 40% in Q2.
EPS rose 11% and 34% the previous two quarters. But sales inched
up less than 1% in Q1 and have declined or risen modestly for
nearly three years.
The stock broke out of a 56.43 buy point April 28 and is up
almost 5% from that entry.