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Ball Looks to Beverage Can Business for Growth

International expansion and product innovation will be key.

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We believe  Ball's (BLL) strategy to expand its worldwide beverage can business as well as its aerospace business and use most of its free cash flow to repurchase shares should enable the company to post solid earnings per share growth in the next few years.

The market has driven down Ball's stock price to roughly 85% of our fair value estimate. Given the company's narrow economic moat, opportunities for long-term growth, and disciplined approach to capital allocation, we believe the stock is attractively priced at this level--about 10 times our estimate for 2012 earnings and about a 10% free cash flow yield.

Thomas Mullarkey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.