Valued at a market cap of $17.4 billion, Ball Corporation (BALL) supplies aluminum packaging products for the beverage, personal care, and household products industries. Additionally, the Westminster, Colorado-based company produces and markets extruded aluminum aerosol containers, reclosable aluminum bottles, aluminum cups, and aluminum slugs.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and BALL fits the label perfectly. The company also provides aerospace and other technologies and services to the U.S. government. BALL is a leading supplier of recyclable aluminum packaging and is renowned for its sustainability efforts.
Despite its strengths, the aluminum packaging giant has declined 18.3% from its 52-week high of $71.32, achieved on Apr. 30. Moreover, shares of BALL have decreased 11.8% over the past three months, significantly underperforming the broader Nasdaq Composite’s ($NASX) 12.7% gain over the same time frame.
Moreover, in the longer term, BALL has fallen 1.2% over the past 52 weeks, significantly lagging behind NASX’s 35.2% returns. BALL’s shares are up nearly 1.3% on a YTD basis, massively underperforming NASX’s 32.7% gains over the same time frame.
To confirm its bearish trend, BALL has been trading below its 200-day and 50-day moving averages since late October.
BALL‘s underperformance over the past year can be primarily attributed to its declining organic revenue and cash flow margins. The company’s shares plunged 7.7% after delivering mixed Q3 earnings results on Oct. 31. Its revenue fell 13.7% year-over-year to $3.08 billion and fell short of the consensus estimates by 1.6%, while its adjusted EPS improved 10% from the year-ago quarter and surpassed the Wall Street estimates by 6%.
BALL reported higher volumes in EMEA, which was offset by lower volumes in North, Central, and South America. Despite low volumes, each of its three segments reported year-over-year improvement in profits, primarily due to significant gross and operating margin expansion.
BALL has outpaced its rival, Crown Holdings, Inc. (CCK), which declined 2.8% over the past 52 weeks and 4.6% on a YTD basis.
Despite BALL’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 14 analysts covering it, and the mean price target of $71.77 suggests a notable 23.2% premium to its current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Is This Tech Stock a Buy at Record Highs Thanks to Quantum Computing?
- This Nuclear Energy Stock Doubled in 2024. Is It Too Late to Buy?
- This AI Stock Could Get Supercharged in 2025 Thanks to Apple
- Unusually Soft Options Activity for Toll Brothers (TOL) Opens Up a Volatility Trade
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
