Many stocks have been testing new highs in 2020, and one of the most notable is O-I Glass Inc. (OI). Currently, OI is trading at $11.09 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $9.57.
To add more color to this target, the company’s high over the last year is $17.86 and the low is $4.30. Over the last 52 weeks, OI is down -37.92% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, OI reported a profit of $268.0 million. O-I Glass Inc. also saw revenues increase to $1.56 billion. In addition, OI has free cash flow of -$435.0 million as of 03-2020 The company’s EBITDA came in at $262.0 million which compares well with its peers.
OI booked profit margins of -6.70%, its Return on Equity (ROE) is -66.20%, and its Return on Assets is -4.40%. All told, it is clear that, OI needs to be on your watchlist.
About O-I Glass Inc.
If readers are unfamiliar, O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. It produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. The company is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. It offers glass containers in a range of sizes, shapes, and colors. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. OI has a short ratio of 2.97 and outstanding shares of 155.75M.
OI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.99 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.75. O-I Glass Inc. OI also noted assets of $9.5 billion at the end of the last quarter. Investors should also keep an eye on sector updates as OI has historically followed its peers on positive news.
All told, O-I Glass Inc. OI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, OI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
O-I Glass Inc. OI is now commanding a market cap of 1.73B and a float of 154.79M. OI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of OI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in OI, either long or short, and we have not been compensated for this article.