Ball Corporation (BLL) Buy or Sell Stock Guide

Last updated: Jun 04, '18

The analysis below may be helpful to you if you have any of the following questions about BLL stock:

  • Is BLL a buy or a sell?
  • Should I sell or hold BLL stock today?
  • Is BLL a good buy / a good investment?
  • What are BLL analyst opinions, recommendations, ratings?

Here are BLL stock buy reasons/signals:

1. Ball's acquisition of Rexam could create enormous value for shareholders if it's able to achieve or exceed synergy targets.

2. Ball's planned acquisition of Rexam should strengthen its narrow economic moat and improve its bargaining power with global customers.

3. Company employees own about 10% of Ball shares, and most employees are motivated by economic value-added metrics, which will help the company focus on increasing shareholder value.

4. BLL stock price ($36.76) is close to the 52-week low ($36.68). Perhaps now is a good time to buy?

5. BLL quarterly revenue growth was 12.60%, higher than the industry and sector average revenue growth (6.20% and 4.90%, respectively).

6. BLL profitability is improving. The YoY profit margin change was 0.50pp.

7. BLL forward dividend yield is 1.04%, higher than the industry (1.01%) and sector (0.89%) forward dividend yields.

8. BLL average analyst rating is Buy.

9. BLL average analyst price target ($45.00) is above its current price ($36.76).

Here are BLL stock sell reasons/signals:

1. Two of Ball's top beverage can customers account for 20% of sales. If one of those customers were to switch to another supplier, it could hurt Ball's sales and profit margins.

2. As soft drinks are replaced with water, and mainstream beer is replaced by bottled craft beers, can manufacturers could be hurt by falling operating rates.

3. Further cuts to defense spending or civil agency budgets could shrink the market opportunity for Ball's aerospace segment.

4. BLL short share of float is 6.43%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

5. BLL short interest (days to cover the shorts) ratio is 8.88. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on BLL?

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