Watch This Underappreciated Stock Chart as the Long-Term Commodity Bull Market Gains Momentum

Spotlight on an Underappreciated Aluminum Packaging Stock

Recently, we've explored the idea of a long-term upswing in commodities, highlighted by renewed merger activity—most notably, reports that Rio Tinto and Glencore are nearing a deal that would form the globe’s largest copper producer. As aluminum futures kick off the week with strong momentum, let’s turn our attention to a lesser-known opportunity, especially relevant for those who recall the off-field controversies of the 2022 World Cup in Qatar.

Ball Corporation, known for its production of cans and bottles, might be familiar from vintage kitchen jars or trendy home décor. However, its biggest client is AB InBev, the parent company behind Budweiser.

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While Budweiser accounts for 17% of Ball’s sales, the company’s revenue streams are diverse, including energy drinks, Molson Coors, and consumer products like aerosol cans. After selling off its aerospace division in early 2024, Ball has become a focused aluminum packaging company.

With aluminum prices climbing, Ball appears well-positioned to transfer increased costs to customers. The stock’s technical outlook is strong, albeit slightly overbought, and seems to be heading toward the $60 mark—a potential 10% upside from current levels.

Notably, AB InBev recently invested $3 billion to reacquire nearly half of its U.S. metal container operations, aiming to enhance supply reliability and reduce costs.

This year’s World Cup, hosted across the U.S., Canada, and Mexico, brings a cultural shift: canned beer faces far fewer restrictions than in Qatar. Budweiser, once again the official beer sponsor, benefits from the fact that glass containers are prohibited in FIFA stadiums.

John Rowland, CMT, serves as Barchart’s Senior Market Strategist and hosts Market on Close.