Trade-Ideas LLC identified Ball ( BLL) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $92.2 million.
  • BLL has traded 342,227 shares today.
  • BLL is trading at 3.41 times the normal volume for the stock at this time of day.
  • BLL crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 32. Currently there are 2 analysts that rate Ball a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Ball has been 1.0 million shares per day over the past 30 days. Ball has a market cap of $9.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.14 and a short float of 6.3% with 6.49 days to cover. Shares are down 1.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ball as a buy. The company's strongest point has been its expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • BALL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BALL CORP increased its bottom line by earning $3.30 versus $2.73 in the prior year. This year, the market expects an improvement in earnings ($3.42 versus $3.30).
  • BLL, with its decline in revenue, underperformed when compared the industry average of 7.5%. Since the same quarter one year prior, revenues slightly dropped by 6.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for BALL CORP is rather low; currently it is at 19.39%. 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 2.12% trails the industry average.
  • After a year of stock price fluctuations, the net result is that BLL's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, BALL CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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