Sealed Air (SEE) Soars 5.9%: Is Further Upside Left in the Stock?
Sealed Air (SEE) shares ended the last trading session 5.9% higher at $30.27. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.1% loss over the past four weeks.
Sealed Air’s shares jumped as it announced a leadership transition and reaffirmed its full year 2023 guidance. The leadership transition will enable the company to better navigate the market and maximize shareholder value.
The company expects 2023 net sales to be in the range of $5.40 to $5.60 billion and adjusted earnings per share in the range of $2.75 to $2.95. Full year adjusted EBITDA is expected to be in the range of $1.075 to $1.125 billion.
This packaging company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of -35.7%. Revenues are expected to be $1.36 billion, down 2.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sealed Air, the consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SEE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sealed Air belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, Sonoco (SON), closed the last trading session 0.9% higher at $50.57. Over the past month, SON has returned -7.8%.
Sonoco's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.26. Compared to the company's year-ago EPS, this represents a change of -21.3%. Sonoco currently boasts a Zacks Rank of #2 (Buy).
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Sealed Air Corporation (SEE) : Free Stock Analysis Report
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