Sealed Air Corporation SEE stock has been a lucrative investment pick, of late, aided by its impressive surprise trend, along with focus on the Reinvent SEE Strategy and restructuring actions. Further, growth in fresh food and e-commerce market has supported the stock.
Notably, Sealed Air has outperformed the industry it belongs to over the past three months. The stock has gained 3%, while the industry recorded a loss of 1%. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average positive earnings surprise being 3.94%. Moreover, the company has a long-term earnings growth rate of 12.2%.
Sealed Air carries a Zacks Rank #2 (Buy), at present. It has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum. The company’s score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. In fact, our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1(Strong Buy) or 2, make solid investment choices.
Let’s find out other reasons that are aiding the Sealed Air stock.
Sealed Air recently announced a reformation plan — Reinvent SEE Strategy — along with a fresh restructuring program, in a move to drive the company’s growth and earnings. The new strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. The strategy will help the company deal with critical packaging challenges, in turn, improving customer services.
Sealed Air will also be aimed at simplifying its operational structure and expand SEE Operational Excellence by upgrading end-to-end processes throughout the company.Thus, the new strategy will fuel Sealed Air’s growth by supporting packaging innovations for fresh food and e-Commerce, and increasing its operating leverage target above 40% per year, beginning in 2019.
Sealed Air has also announced a three-year restructuring program to drive total annualized savings by the end of 2021, in the range of $215-$235 million. Moreover, Sealed Air’s growth will be supported by higher demand for its core product portfolio, recently-introduced innovations, solid fresh food markets and e-commerce sector.
Other Stocks to Consider
Other stocks in the same space worth a look are Brady Corporation BRC, Owens-Illinois, Inc. OI and Alarm.com Holdings, Inc. ALRM. All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Brady has a long-term earnings growth rate of 7.5%. The company’s shares have gained around 13% over the past three months.
Owens-Illinois has a long-term earnings growth rate of 6.6%. Its shares have gained 4%, over the past three months.
Alarm.com has a long-term earnings growth rate of 17%. The stock has appreciated 24%,over the past three months.
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