Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ball as such a stock due to the following factors:
- BLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.9 million.
- BLL has traded 101,361 shares today.
- BLL traded in a range 265.9% of the normal price range with a price range of $2.22.
- BLL traded below its daily resistance level (quality: 42 days, meaning that the stock is crossing a resistance level set by the last 42 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on BLL:
Ball Corporation, together with its subsidiaries, supplies metal packaging products to the beverage, food, personal care, and household products industries worldwide. The stock currently has a dividend yield of 0.8%. BLL has a PE ratio of 21.5. Currently there are 2 analysts that rate Ball a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Ball has been 878,700 shares per day over the past 30 days. Ball has a market cap of $8.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.11 and a short float of 3.1% with 5.47 days to cover. Shares are up 21% year-to-date as of the close of trading on Wednesday.
rates Ball as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 38.29% and other important driving factors, this stock has surged by 40.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BLL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BALL CORP has improved earnings per share by 38.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BALL CORP increased its bottom line by earning $2.73 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($3.80 versus $2.73).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 29.9% when compared to the same quarter one year prior, rising from $72.00 million to $93.50 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 0.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Containers & Packaging industry and the overall market, BALL CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Ball Ratings Report.