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6 Reasons to Dump Ball Corporation (BLL) Stock Right Now
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Ball Corporation has been disappointing investors of late. Is it time for investors to dump this stock from their portfolio? Let’s delve deeper and find out.
Tepid Guidance: In second-quarter conference call, Ball Corporation anticipates earnings per share growth for 2017 to be lower than the guidance range of 20-30% due to issues in the EMEA segment’s food can business. The company anticipates the decline in food can business to persist due to timing issues with some customers. Further, one of the company’s large customers is experimenting with an alternative substrate which remains a concern for Ball Corporation’s volume.
Estimates Moving South: Estimates for the company for fiscal 2017 and fiscal 2018 have moved south in the past 60 days, reflecting negative outlook of analysts. For fiscal 2017, the estimate has dropped 6% to $2.04 per share and for fiscal 2018 it has dipped 6% to $2.40.
Price Performance: The shares of this leading supplier of metal packaging products to beverage, food, personal care, and household industries worldwide underperformed the industry with respect to price performance in the past one year. The stock gained 3.8%, while the industry recorded growth of 9.7%.
Near-term Headwinds Remain: The company’s performance will be marred by political and economic unrest in Turkey and Egypt. There's been 40% increase in retail price points in Egypt due to the devaluation. In addition, the 50% carbonation tax in Saudi Arabia also remains an issue as its hurting consumer demand in the region. Ball Corporation is also facing tight supply and demand situation in its global aluminum aerosol business.
Expensive Valuation: In case of Ball Corporation, the trailing 12-month price earnings (P/E) ratio is 22.4, while the industry's average trailing 12-month P/E ratio is lower at 19.7. This implies that the stock is overvalued.
Unfavorable Zacks Rank: Ball Corporation currently carries a Zacks Rank #4 (Sell).
Caterpillar has expected long-term earnings growth rate of 9.5%.
Terex has expected long-term earnings growth rate of 19.7%.
Komatsu has expected long-term earnings growth rate of 12.7%.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
Image: Bigstock
6 Reasons to Dump Ball Corporation (BLL) Stock Right Now
Ball Corporation has been disappointing investors of late. Is it time for investors to dump this stock from their portfolio? Let’s delve deeper and find out.
Tepid Guidance: In second-quarter conference call, Ball Corporation anticipates earnings per share growth for 2017 to be lower than the guidance range of 20-30% due to issues in the EMEA segment’s food can business. The company anticipates the decline in food can business to persist due to timing issues with some customers. Further, one of the company’s large customers is experimenting with an alternative substrate which remains a concern for Ball Corporation’s volume.
Estimates Moving South: Estimates for the company for fiscal 2017 and fiscal 2018 have moved south in the past 60 days, reflecting negative outlook of analysts. For fiscal 2017, the estimate has dropped 6% to $2.04 per share and for fiscal 2018 it has dipped 6% to $2.40.
Price Performance: The shares of this leading supplier of metal packaging products to beverage, food, personal care, and household industries worldwide underperformed the industry with respect to price performance in the past one year. The stock gained 3.8%, while the industry recorded growth of 9.7%.
Near-term Headwinds Remain: The company’s performance will be marred by political and economic unrest in Turkey and Egypt. There's been 40% increase in retail price points in Egypt due to the devaluation. In addition, the 50% carbonation tax in Saudi Arabia also remains an issue as its hurting consumer demand in the region. Ball Corporation is also facing tight supply and demand situation in its global aluminum aerosol business.
Expensive Valuation: In case of Ball Corporation, the trailing 12-month price earnings (P/E) ratio is 22.4, while the industry's average trailing 12-month P/E ratio is lower at 19.7. This implies that the stock is overvalued.
Unfavorable Zacks Rank: Ball Corporation currently carries a Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks in the same industry include Caterpillar Inc. (CAT - Free Report) , Terex Corporation (TEX - Free Report) and Komatsu Ltd. (KMTUY - Free Report) . All three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar has expected long-term earnings growth rate of 9.5%.
Terex has expected long-term earnings growth rate of 19.7%.
Komatsu has expected long-term earnings growth rate of 12.7%.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>