Strength Seen in Ball (BALL): Can Its 7.2% Jump Turn into More Strength?
Ball (BALL) shares soared 7.2% in the last trading session to close at $58.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1% loss over the past four weeks.
Ball Corporation’s shares have gained on reports that the company is exploring the sale of its aerospace unit. This divestment will help the company to focus more on its beverage packaging operations and lower its debt levels.
The unit consists of operations that manufacture and sell aerospace and other related products and provide services to the defense, civil space and commercial space industries. It generated 13% of the company’s sales and 12% of the total segment operating income in 2022. Per sources, Ball Corp launched an auction process to sell the unit, further generating interest from large defense companies.
This metal packaging company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -24.4%. Revenues are expected to be $3.88 billion, down 6.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ball, the consensus EPS estimate for the quarter has been revised 7.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on BALL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ball belongs to the Zacks Containers - Metal and Glass industry. Another stock from the same industry, Crown Holdings (CCK), closed the last trading session 2.4% higher at $88.81. Over the past month, CCK has returned 5.6%.
Crown's consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $1.67. Compared to the company's year-ago EPS, this represents a change of -20.5%. Crown currently boasts a Zacks Rank of #3 (Hold).
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