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Options Bears Blast Crown Stock Before Earnings

CCK has beat earnings expectations for the last four quarters

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Crown Holdings, Inc. (NYSE:CCK) is an American company that makes metal beverage and food cans, metal containers, and specialty packing. Through its subsidiaries, Crown is one of the top global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment, and services to a broad range of end markets. This afternoon, CCK closed at $100.41.

Yesterday, June 21, Crown Holdings announced that the company will be releasing its second quarter of 2021 earnings after the close on Monday, July 19. CCK will also hold a conference call to subsequently discuss the results on Tuesday, July 20. Crown Holdings has had a clean sweep of earnings beats on all four of its most recent earnings reports.

For the second quarter of 2020, CCK beat analyst estimates by a margin of $0.03 and reported an earnings per share (EPS) of $1.33. For the third quarter of 2020, Crown Holdings' EPS increased to $1.96, and CCK beat expectations by a margin of $0.38. For the fourth quarter of 2020, the company posted a decrease in earnings, dropping to $1.50 per share but still beating estimates by a margin of $0.23. For the first quarter of 2021, Crown Holdings reported an EPS of $1.83 and beat expectations by a margin of $0.44. Analysts expect that the company will report a slightly decreased EPS of $1.77 in its upcoming earnings report.

Crown Holdings stock has increased about 53% year-over-year, and still remains well above its June 2020 bottom of $61.00. Additionally, shares of Crown Holdings stock have grown 2.5% year-to-date, but CCK remains currently down approximately 4% from its May 7 record high of $114.55. Crown Holdings stock also has a forward dividend $0.80 and a dividend yield of 0.81%.

From a fundamental point of view, Crown Holdings stock is a fairly reliable value stock that should yield modest returns over time. CCK trades at a decent price-earnings ratio of 19.10. However, Crown Holdings stock has a much more appealing forward price-earnings ratio of 15.34.

Lastly, in the options pits, there looks to be plenty of room for bulls to enter the ring. This is per CCK's 50-day put/call volume ratio of 2.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 84% of readings from the past 12 months. This suggests a much healthier-than-usual appetite for long puts of late.

 

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