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Is Now An Opportune Moment To Examine Sealed Air Corporation (NYSE:SEE)?

Simply Wall St

Sealed Air Corporation (NYSE:SEE), which is in the packaging business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$42.60 at one point, and dropping to the lows of US$36.75. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Sealed Air's current trading price of US$38.59 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Sealed Air’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Sealed Air

Is Sealed Air still cheap?

Good news, investors! Sealed Air is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $51.05, but it is currently trading at US$38.59 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Sealed Air’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will Sealed Air generate?

NYSE:SEE Past and Future Earnings, January 22nd 2020
NYSE:SEE Past and Future Earnings, January 22nd 2020

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Sealed Air’s earnings over the next few years are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since SEE is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SEE for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SEE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sealed Air. You can find everything you need to know about Sealed Air in the latest infographic research report. If you are no longer interested in Sealed Air, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.