Ball Corporation Hits New 52-Week High - Analyst Blog


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Shares of metal and plastic packaging manufacturer for beverages and foods, Ball Corporation ( BLL ) reached a new 52-week high of $51.77 on Dec 27. Ball Corporation has a market cap of $7.46 billion. Average volume of shares traded over the last three months stood at approximately 881,138. Ball Corporation has long-term estimated earnings per share growth rate of 6.9%.

What's Driving Ball Corporation Upward?

Ball Corporation shares have escalated following its third quarter earnings on Oct 24. Ball Corporation reported third-quarter 2013 adjusted earnings of $1.00 per share, up 11% year over year led by better-than-expected global beverage can volumes and an improved seasonal vegetable harvest.

The company will continue to benefit from increased capacity in the Alagoinhas plant in Brazil. The plant began production earlier in 2012 and completed installation of a second can line that is capable of manufacturing multiple can sizes. This increased capacity will help the company to capitalize on the increased demand, spurred by the upcoming soccer World Cup in Brazil.

In December, Ball acquired Envases del Plata S.A. de C.V., a leading producer of extruded aluminium aerosol packaging in Mexico. Demand for extruded aluminum packaging for personal care products continues to increase; thus providing new opportunities for Ball's growing business.

In November, Ball Corporation announced the closure of steel aerosol packaging manufacturing plant in Danville, Ill. Earlier in February, the company announced that it will close its Elgin, Ill., food and household products packaging facility in Dec 2013. These closures are consistent with the company's strategy to maintain an efficient manufacturing footprint and reduce costs. Ball has also initiated cost cutting measures in Europe, the benefits of which are expected to be realized in 2014 and 2015.

Other Stocks to Consider

Ball Corporation retains a short-term Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector include Sealed Air Corporation ( SEE ), Packaging Corporation of America ( PKG ) and UFP Technologies, Inc. ( UFPT ). While Packaging Corporation and Sealed Air hold a Zacks Rank #1 (Strong Buy), UFP Technologies carries a Zacks Rank #2 (Buy).

BALL CORP (BLL): Free Stock Analysis Report

PACKAGING CORP (PKG): Free Stock Analysis Report

SEALED AIR CORP (SEE): Free Stock Analysis Report

UFP TECH INC (UFPT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: BLL , PKG , SEE , UFPT

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