Please ensure Javascript is enabled for purposes of website accessibility

Why Ball Corporation Stock Gained 12% in January

By Demitri Kalogeropoulos - Feb 7, 2020 at 9:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were betting on good news in the aluminum beverage packaging giant's early February earnings report.

What happened

Ball Corporation (BALL 2.39%) stock outperformed the market last month by gaining 12% compared to a roughly flat result for the S&P 500, according to data provided by S&P Global Market Intelligence.

The boost added to the aluminum packaging producer's broader rally, given that shares jumped 41% during 2019.

Aluminum cans of assorted colors.

Image source: Getty Images.

So what

Investors gained more optimism that firming consumer spending around the world, and particularly in the U.S., might lift Ball's fortunes as it closes out its fiscal 2019. The company reported modest growth in its beverage segment and sharp gains in the aerospace division in late October. Together, those gains helped convince management to raise their volume expectations for the year. Coca-Cola, a major customer, added to that optimism by reporting robust sales growth for Q4 late last month.

Now what

This week, investors saw that Coke's positive industry comments translated into better results for Ball. In its fourth-quarter report on Feb. 6, Ball said production volumes had picked up. "We finished 2019 on a strong note," CEO John Hayes said in a press release. That success implies more sales and profit gains, and cash returns to shareholders, from Ball in 2020.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ball Corporation Stock Quote
Ball Corporation
$61.69 (2.39%) $1.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.