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 Corporation 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 $45.2 million.
- BLL has traded 1.0 million shares today.
- BLL traded in a range 331.6% of the normal price range with a price range of $2.63.
- BLL traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 0.9%. BLL has a PE ratio of 20.0. Currently there are 3 analysts that rate Ball Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Ball Corporation has been 1.1 million shares per day over the past 30 days. Ball has a market cap of $7.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.07 and a short float of 3% with 5.02 days to cover. Shares are up 8.6% year-to-date as of the close of trading on Monday.
rates Ball Corporation as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. 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:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BALL CORP reported significant earnings per share improvement 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 ($3.70 versus $2.73).
- BLL, with its decline in revenue, underperformed when compared the industry average of 5.4%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Containers & Packaging industry average, but is greater than that of the S&P 500. The net income increased by 105.4% when compared to the same quarter one year prior, rising from $60.60 million to $124.50 million.
- The gross profit margin for BALL CORP is rather low; currently it is at 20.57%. Regardless of BLL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.23% trails the industry average.
- You can view the full Ball Corporation Ratings Report.