Headquartered in Westminster, Colorado, Ball Corporation (BALL) is a major player in the packaging and aerospace industries. With a market cap of $18.2 billion, Ball is dedicated to delivering sustainable and innovative packaging solutions, particularly aluminum beverage containers, while advancing cutting-edge technologies in aerospace.
Ball Corporation stock has significantly underperformed the broader market over the past year. The stock has gained 16.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.6%. In 2024, BALL stock is up 5.8%, compared to SPX’s 23.6% returns on a YTD basis.
Zooming in further, BALL stock has outperformed the Materials Select Sector SPDR Fund’s (XLB) 14.6% gain over the past 52 weeks.
Shares of Ball Corporation declined 7.7% following the release of its Q3 earnings on Oct. 31, reflecting mixed financial results. The company reported revenue of $3.08 billion, falling short of analyst estimates of $3.13 billion, representing a 13.7% year-over-year decline.
However, it delivered an adjusted EPS of $0.91, surpassing consensus estimates by 6%. Also, the gross margin improved to 21.3% from 19% in the prior year, while the operating margin saw a significant increase to 16.7%, up from 9.1% in the same quarter last year.
For the current fiscal year, ending in December, analysts expect Ball Corporation’s EPS to grow 8.6% year over year to $3.15 per share. The company’s earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 14 analysts covering BALL stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, two “Moderate Buys,” six “Holds,” and one “Strong Sell.”
This configuration is less bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Nov. 4, Jefferies analyst Philip Ng maintained a “Buy” rating on Ball Corporation, with a price target of $80, which indicates a 31.4% upside from the current levels.
The mean price target of $71.77 represents a 17.9% premium to BALL’s current price levels. The Street-high price target of $83 suggests an upside potential of 36.4%.
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