) reached a new 52-week high of $61.98 on Jun 24 and eventually
closed trading marginally lower at $61.36. The stock price
appreciation came on the back of expected benefits from expansion
in emerging markets.
Ball Corporation has delivered a solid 1-year return of about 45.7%
and a year-to-date return of 16.3%, outperforming the respective
S&P 500. Average volume of shares traded over the last 3 months
is approximately 967K.
This Broomfield, CO-based company is the largest manufacturer of
beverage cans in North America with a market cap of $8.5 billion
and long-term estimated earnings per share growth rate of 11.1%.
The company has surpassed the Zacks Consensus Estimate in all of
the 4 trailing quarters with an average surprise of 11.41%.
Shares of Ball Corporation started gaining since May 1 after the
company reported first-quarter 2014 adjusted earnings of 81 cents
per share, which easily beat the Zacks Consensus Estimate of 68
cents. Moreover, the reported figure surged 40% year over year,
aided by global packaging volume growth and manufacturing
efficiencies. The company affirmed its free cash flow of $550
million for full-year 2014 and maintained the long-term diluted
earnings per share growth goal of 10-15%.
The shares gained further support as Ball Corporation, on May 19,
announced its intention to expand in Southeast Asia by building a
one-line beverage can manufacturing plant in Myanmar. The new plant
will supply beverage containers to Coca-Cola Pinya Beverages, a
joint venture between
The Coca-Cola Co.
) and two other customers. The Myanmar plant, which is expected to
come online in mid 2015, will help the company to capitalize on the
growing demand for beverage containers in a relatively fast growing
On Jun 5, Ball Corporation announced that it has been ranked 3rd
among the 500 largest U.S. companies by Newsweek. The Newsweek
Green Rankings which are considered one of the world's most
recognized assessments of corporate environmental impact, evaluates
the U.S. companies by market capitalization and rates them based on
performance on key performance indicators, including: energy
productivity; greenhouse gas emissions; water and waste;
reputation; sustainability pay link and board committee; and third
party verification of environmental metrics.
On Jun 19, 2014, Ball Corporation announced that its Aerospace
& Technologies segment has been selected by the Lawrence
Livermore National Laboratory to build the optics and support
structure, designated as the L1-L2 Lens Assembly, for the camera on
the Large Synoptic Survey Telescope (LSST), which will sit atop the
8,800 ft. tall Cerro Pachon mountain in Chile.
The Aerospace & Technologies segment has recently successfully
completed the tests of the final phase of the Defense Advanced
Research Projects Agency's (DARPA) Membrane Optic Imager Real-Time
Exploitation (MOIRE) telescope program.
Ball Corporation released its sustainability report highlighting
future goals. The company stated that it needs to focus on six key
areas, namely, innovation, operations, talent management,
recycling, supply chain and community. By 2020, Ball Corporation
aims to reduce the carbon footprint of its most common beverage can
formats by 25%.
Continued product innovation along with the introduction of
significantly lighter-weight aerosol and beverage cans will also
drive growth for Ball Corporation. The new aerosol can is expected
to be launched in the U.S. in 2015. This particular can will be 10%
lighter than the cans used currently.
Ball Corporation 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 in
Brazil, which is on track. The company has also initiated cost
control measures in Europe, the benefits of which are expected to
be realized through 2014 and 2015.
Ball Corporation currently has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks in the same sector include
Crown Holdings Inc
Graphic Packaging Holding Company
), both of which hold a Zacks Rank #2 (Buy).
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BALL CORP (BLL): Free Stock Analysis Report
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