Notably, the stock has rallied 27% in a year’s time, higher than the S&P 500’s gain of around 6%. Additionally, Ball Corporation has outperformed 9% growth recorded by the industry during the same time frame.
Investors are optimistic on this Zacks Rank #3 (Hold) company, backed by Ball Corporation’s solid third-quarter 2018 results, lower debt level and strong backlog.
In addition, Ball Corporation has an impressive VGM Score of B. In this, V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of these three scores. Such a score eliminates the negative aspects of stocks and selects winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Our research shows that stocks with Style Scores of A or B, when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, offer the best investment opportunities.
What Led to the 52-week High?
Ball Corporation’s shares have gained 6% since the company reported third-quarter results on Nov 1, 2018. Its adjusted earnings and revenues improved on a year-over-year basis in the third quarter. The company’s results were driven by solid operational performance in every business, as well as lower corporate costs, despite certain start-up costs, elevated transportation costs and higher effective tax rate.
Ball Corporation expects its free cash flow will be around $800 million and capital spending will be in excess of $700 million in 2018. Notably, it reaffirms comparable EBITDA guidance of $2 billion and expects free cash flow of more than $1 billion in 2019.
Ball Corporation remains on track with deleveraging and anticipates net debt to comparable EBITDA ratios of 3.0-3.5 times by the end of this year. Furthermore, the net $50 million of annual fixed cost savings associated with the North American optimization program is anticipated to benefit the company’s fourth-quarter 2018 performance and beyond.
Ball Corporation anticipates its aerospace segment to produce operating earnings improvement in the current quarter as new contracts ramp up. With contracted backlog levels at a record $2 billion, and won-not-booked backlog now exceeding $5 billion, the future looks brighter for the aerospace segment for the next 3-5 years.
The above-mentioned tailwinds have raised investors’ optimism in the stock and will likelyboost the company’s share price in the days ahead.
Enersys has a long-term earnings growth rate of 10%. The stock has rallied 29% in a year’s time.
Mobile Mini has a long-term earnings growth rate of 14%. The company’s shares have gained 21% during the past year.
Rexnord has a long-term earnings growth rate of 16.4%. Its shares have gained 21% over the past year.
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