This consumer packaging company beat analysts’ estimates by $0.06 last quarter. Current quarter estimates are $0.95, and earnings are scheduled to be announced on November 3.
Ball Corporation (BLL)
From Martin’s Ultimate Portfolio
We will allocate 2% of our original $100K portfolio to buy shares in Ball Corporation (BLL, Weiss Stock Rating B-) at a limit price of $80.45, good till canceled.
Ball Corp. is a materials-related company that makes consumer packaging for household, beverage and food products. The company has many name-brand clients, including Coca-Cola, Anheuser Busch, Procter & Gamble, Nestle, as well as numerous other Fortune 500 companies.
However, 10% of BLL’s business comes from the aerospace industry. In fact, the U.S. Air Force recently ranked Ball Corp. as a Tier 1 Superior Supplier.
Ball Corp. has a market cap of $14 billion and sports a modest dividend yield. Other financial highlights include:
• Generated $287 million in free cash flow during the second-quarter.
• Trades at a 21% discount in terms of book value compared with the average of its peers.
• Recently acquired Rexam in a $8.4 billion deal that boosted free-cash-flow guidance toward the $750-$850 million range.
• Earnings-per-share (EPS) expected to grow in the 10-15% range annually.
• Active insider buying, with eight executives acquiring around $3 million worth of shares.
Martin D. Weiss, Martin’s Ultimate Portfolio, published by Money and Markets, a Division of Weiss Research, Inc.
www.moneyandmarkets.com/services/trading-services/martinsultimate-portfolio
Email: issues@e.moneyandmarkets.com, 800-291-8545, October 5, 2016