This stock is about as off the radar as you can get, but it may be poised to move much higher. O-I Glass Inc. (NYSE: OI), with sales of $6.1 billion in 2020, is one of the world’s leading manufacturers of packaging and is the single largest maker of glass containers worldwide. O-I represents 25% to 30% of the world’s glass container market and, when considering technology licensees, its technology is used for one out of every two glass bottles in the world.
The company’s founder, Michael J. Owens, is credited with inventing the modern-day glass bottle forming machine. It operates 72 plants in 20 countries. BofA Securities is bullish and said this after the latest earnings were released:
OI delivered first quarter earnings-per-share of $0.35 compared to BofA at $0.27 given better volumes and accelerated margin expansion efforts. Second quarter earnings-per-shares guidance of $0.45-0.50 includes +15% volume growth. For 2021, OI expects 3-4% volume growth and $50 million of margin expansion benefit. Achievable guidance, strong volumes, agile operations and Paddock should allow for valuation expansion.
The short position comes in at 4% of the float. The $20 BofA Securities price target for O-I Glass stock compares with the lower $17 consensus target and Thursday’s $18.22 closing print, after a close to 3% gain for the day.
This stock has had rocket ship volatility but also holds massive potential upside. Virgin Galactic Holdings Inc. (NASDAQ: SPCE) is an integrated aerospace company that develops human spaceflight for private individuals and researchers in the United States. It also manufactures air and space vehicles.
The company’s spaceship operations include commercial human spaceflight, flying commercial research and development payloads into space. In addition, it engages in the design and development, manufacturing, ground and flight testing, and post-flight maintenance of spaceflight vehicles.
Virgin Galactic employs 4,400 people and is not yet profitable, and commercial operations have not yet begun. Commercial operations are expected to begin later this year. The stock recently was hit hard on a poor earnings report and may be offering aggressive investors a solid entry point.
With 21% of the shares sold short, any positive news could send this stock to the moon. BofA Securities has set a massive $50 price target. The $32.30 consensus target on Virgin Galactic stock is lower but still well above the most recent close at $15.50, which down almost 4% for the day.
While leaning on Reddit/WallStreetBets posts exclusively for trading or investment ideas is probably not the best way to analyze stocks, the data, in addition to standard Wall Street research, could prove very helpful in the future. We will be keeping a close eye on how these and other stocks fare going forward.