41.69 0.00 (0.00%)
After hours: 5:06PM EDT
|Bid||41.69 x 800|
|Ask||41.69 x 1100|
|Day's Range||41.40 - 42.37|
|52 Week Range||30.22 - 47.13|
|Beta (3Y Monthly)||1.05|
|PE Ratio (TTM)||17.60|
|Forward Dividend & Yield||0.64 (1.52%)|
|1y Target Est||N/A|
When the market is turbulent, investors often embark on a flight to safety. That means investors will pile into risk-off assets, such as Treasuries, gold and consumer staples. Indeed, this is exactly what has happened over the last month. While the S&P 500 is off more than 2% in the last month, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) is up 9%, and the SPDR Gold Shares (NYSEARCA:GLD) is up 5%. And since Aug. 5, the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) has gained 5%.Source: Shutterstock Given that backdrop, one would assume a food and product packaging company like Sealed Air (NYSE:SEE) would also have benefited from this August flight to safety. It did, for awhile. At one point in early August, SEE stock price was up nearly 10% in August. But the stock has since given up most of those gains, and now SEE stock price is more than 5% off its August highs, while TLT, GLD, and XLP are all at or right next to their August highs.In other words, while SEE stock was initially thought of as a great risk-off investment in this stumbling economy and turbulent market, investors have since second-guessed the relative safety of Sealed Air stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI totally get it. Ostensibly, SEE stock seems very stable, with a fairly attractive valuation and a steady yield. But at this point, it has optical issues which may keep SEE stock price relatively muted for the foreseeable future. * 7 Great Small-Cap Stocks to Buy As a result, I think Sealed Air stock is best left alone for now. Its fundamentals are strong enough that it's not a great short. Its optics are troubling enough that it's not a great long. In such a situation, the sidelines are the best place to hangout. Sealed Air's Fundamentals Are Pretty GoodThe fundamentals supporting SEE stock price are pretty good, and they're mostly favorable to the bull thesis.SEE is a global food and packaging company. Its business is pretty stable. No matter what the global economy is doing, the world is still going to have to transport staple food and goods. It's true that, as global economic activity slows, so will the trading of these goods. But the slowdown will be gradual, and it won't be that steep.Consequently, Sealed Air's performance over the past several years - a low-to-mid-single=digit-percentage revenue grower, excluding acquisitions, with slight margin expansion and low-to-high-single-digit-percentage EBITDA growth - will probably be largely duplicated over the next several years. Its growth will likely slow a bit as the global economy weakens. But Sealed Air should be able to grow its revenues at a low-single-digit rate over the next several years, on largely stable margins, which - when coupled with its buybacks of SEE stock - should produce high- single-digit-earnings per share growth.Sealed Air's EPS can reach somewhere around $4.80 by fiscal 2025. Based on a forward price-earnings multiple of 17, which is average for the packaged-goods sector, that implies a fiscal 2024 price target for SEE stock of over $80. Discounted back by 10% per year, that equates to a 2019 price target of about $50.SEE stock price is slightly above $40 today. Thus, the long term growth fundamentals currently say that Sealed Air stock is undervalued. The Optics Give PauseAlthough SEE stock is undervalued, the optics surrounding Sealed Air warrant this undervaluation for the time being. Specifically, there is an active SEC investigation overhanging Sealed Air which has created a lot of distractions. These distractions detract from Sealed Air's value as a risk-off investment during turbulent times.This SEC investigation has shifted into another gear in 2019. In May, Sealed Air was served a subpoena relating to a previously disclosed SEC investigation into the company's accounting practices. That additional subpoena has had an avalanche impact on the company.A month later, Sealed Air fired its CFO. Three months later, the company received a grand jury subpoena from a U.S. Attorney for documents related to the firing. A week after that, Sealed Air switched audit firms. And, a week after that, Upslope Capital Management, which was shorting Sealed Air stock, issued a report, citing the SEC investigation and accounting irregularities as two big reasons why it believed that SEE stock would head lower.Against the backdrop of all those distractions, Sealed Air's organic revenue growth has slowed to a multi-year low in 2019.In other words, SEE stock price is being weighed down by slowing growth trends against the backdrop of a ton of SEC/accounting noise that doesn't give investors confidence. Slowing growth plus a lack of confidence is not a winning combination.So despite SEE's favorable fundamentals, SEE stock price likely won't march meaningfully higher anytime soon. The Bottom Line on SEE StockIt's easy to look at SEE stock and see a stable consumer staples stock that should theoretically outperform during turbulent times. But that cursory analysis ignores the ugly optical risks overhanging the company. Those unfavorable optics will ultimately put a cap on near-term gains by SEE stock, making it unattractive for now.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Sealed Air Stock Is Cheap, But Unattractive appeared first on InvestorPlace.
Sealed Air's (SEE) focus on innovations, growth in the fresh food and e-commerce market, restructuring actions and acquisitions will drive growth.
Sealed Air (NYSE:SEE) is never going to be pegged as a high-growth name. The current SEE stock price, near $44, although well up from December's low, is also well below the mid-2015 high near $56. The long-term downtrend is intact to be sure.Source: Shutterstock Sealed Air stock has done what most other stocks have been unable to do over the course of the past couple of trading days though. That is, overcome a market-wide bearish tide in response to last quarter's results. * 10 Generation Z Stocks to Buy Long One or two good days doesn't make a trend. But, all trends start out with one or two good days. If nothing else, the strength SEE stock has demonstrated of late, and the technical context behind it, suggests this name could be a good place to shield yourself from the latest wave of global economic turbulence.InvestorPlace - Stock Market News, Stock Advice & Trading Tips SEE Stock Price Soars on EarningsA new batch of tariffs on Chinese-made goods got the blame, and undoubtedly the added costs they'll impose on consumers and corporations will further stymie the economy. The broad market was due for a setback anyway, up 27% from December's low. Traders were just waiting for the right catalyst, already dragging the market lower before the announcement was made.SEE stock wasn't immune to that weakness either, peeling back from technical resistance early last week in front of Friday morning's second quarter report.Right on cue, a healthy Q2 print spurred a 7.7% bounce on Friday to test another recently-developed technical ceiling. Earnings of 80 cents per share of Sealed Air stock versus expectations of only 64 cents incited immediate buying, bolstered by an improved outlook. Full-year earnings guidance of between $2.65 and $2.75 was lifted to a range of between $2.70 and 2.80 per share. Sealed Air stock was down modestly on Monday, though the SEE stock price remains within reach of another breakout thrust that could pull it out of a multi-week lull.The persistent strength is a breath of fresh air, though suspicious given the backdrop. There's a double-barreled logic to the bullishness that suggests Sealed Air is a top name to own here and now. Two Reasons Sealed Air is ImmuneSealed Air makes packaging solutions, ranging from bubble wrap to fresh meat trays to IV bags. It competes directly and indirectly with the likes of Packaging Corp of America (NYSE:PKG) and Ball Corporation (NYSE:BLL), and while it's not a terribly crowded arena, it's a slow-growth business. Not counting its impending acquisition of Automated Packaging Systems, This year's top line is expected to only grow around 2%. Next year's projected revenue growth is on the order of 4%.SEE is a business that could prove something of a safe-haven in the coming months for a couple of key reasons.One of those reasons is the stability of the packaging business itself.The tariff war to date has primarily targeted technology, materials and foods. Sealed Air has a hand in some affected industries, but doesn't rely heavily on them. And, to the extent it does count on certain business focuses remaining robust, its role as a packager is largely unaffected by price changes for what's inside the package. It would take an outright recession to meaningfully impact Sealed Air's business.Second, it's not terribly reliant on China and other Asian countries for revenue. North America alone made up just under 60% of last quarter's total business, while its Asia and Pacific arm only made up less than 15% of its revenue in Q2. Automated Packaging Systems derives three-fourths of its revenue from North American customers, which will keep it primarily a domestic business.A more self-sufficient business environment with the United States actually plays into the hand Sealed Air is holding. What Next for Sealed Air Stock? Click to EnlargeThe unusual bullish argument may hold water in light of the unusual market circumstances, though that means little until and unless traders have good reason to expect more upside. And so far, they don't.That could change rather readily.In the very near term, the line in the sand is around $44.50, where SEE stock peaked in July as well as on Friday and Monday. A break above that level could be seen as more convincing proof of a breakout move, and inspire some new bulls that are still on the sidelines. Click to EnlargeBeyond that, the technical ceiling that has been guiding Sealed Air shares lower since 2015 has yet to be breached. It's at $46 right now. If the SEE stock price can punch through that resistance, look for investors and the financial media to start throwing around the rhetoric that sounds a whole lot like the bullish thesis just now laid out.In the absence of that technical progress, Sealed Air stock remains mostly a question mark despite its underappreciated resilience.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post Response to Sealed Air's Q2 (Almost) Makes SEE Stock a Top Bet appeared first on InvestorPlace.
Sealed Air Corporation (NYSE:SEE), which is in the packaging business, and is based in United States, saw significant...
Solid earnings from Sealed Air renewed buying interest in packaging and container stocks. Play the leading names using these tactics.
Sealed Air acknowledges federal subpoenas and information requests in the wake of its CFO firing, while the Charlotte manufacturer reported strong earnings and the closing of a major acquisition in the second quarter in its latest quarterly report.
Emerson's (EMR) third-quarter fiscal 2019 earnings are likely to gain from strength in the Automation Solutions and Commercial & Residential Solutions segments.
Sealed Air (SEE) delivered earnings and revenue surprises of 25.00% and -0.49%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Sealed Air (NYSE: SEE ) reported second-quarter earnings of 80 cents per share, which beat the analyst consensus estimate of 64 cents by 25%. This is a 25% increase over earnings of 64 cents per share ...
Sealed Air (NYSE: SEE ) releases its next round of earnings this Friday, August 2. Here's Benzinga's essential guide to Sealed Air's Q2 earnings report. Earnings and Revenue Analysts predict Sealed Air ...
Sealed Air (NYSE:SEE) stock will report earnings on Aug. 2 before the opening bell. The Charlotte-based packaging company may not always make the headlines every day, but it performs a function critical to modern life. It provides packaging materials for both food and the shipping of goods. Most Americans know the company for its Bubble Wrap and Cryovac food packaging materials.Source: Shutterstock While the company's products add value to consumers, shareholder return has long proved more elusive. The stock broke out of its long-held range in 2014, only to set a new record high the next year and pull back. Rising profit forecasts show some potential for return. Still, traders should assume that current ranges will define SEE stock until proven otherwise. Expect Flat Earnings, Revenue NumbersWall Street forecasts earnings of 64 cents per share. If this number holds, it will represent no change from the same quarter last year. Analysts also expect revenues of $1.17 billion. The company brought in $1.16 in the year-ago quarter.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSEE stock has beaten earnings estimates in each of the previous seven quarters. However, Sealed Air missed on revenues in the last quarter. They blamed this on currency fluctuations. That began a correction phase in the stock throughout May. It has since recovered most of the losses. Still, the current SEE stock price of around $44 per share comes in below the $46.62 per share level it saw before the last earnings report. It has also experienced analyst downgrades and a firing in the C-suite during this time. * 10 Companies I'd Love to See Go Public Profit Growth May Not Lead to Stock GainsAmid this turbulence, the company has improved profit growth. Over the previous five years, earnings grew at an average rate of 4.5%. However, profits growth has accelerated. Consequently, analysts now expect earnings to increase by 9.2% this year and 11% in fiscal 2020. This outperforms peers such as International Paper (NYSE:IP), Amcor (NYSE:AMCR) or Owens-Illinois (NYSE:OI). One could make an argument that its forward price-to-earnings ratio should move higher than the current 14.5 with the faster profit increases.Unfortunately, this improvement has so far done little to improve the SEE stock price. SEE peaked at almost $56 per share in the summer of 2015. Since that time, it has seen a gradual downward slide. It has also not made it above $50 since that time.Even more worrisome, SEE stock has a long history of range-bound trading. SEE peaked at $35 per share in 1998. It did not move beyond that level until 2014! Unfortunately for bulls, SEE again appears stuck in a range. Long-term holders will receive a little consolation for its rising dividend. Still, at a yield of just under 1.5%, few will buy the equity for these payouts. Should I Buy SEE Stock Before Earnings?Given the history of Sealed Air stock, I would not buy this equity going into earnings. I say that not so much because of the quarter. Despite zero profit growth for this particular quarter, overall profit increases look poised to break into the double digits next year.What traders need is to see if SEE stock breaks its old highs. Twice in 2017, SEE pulled back right as it approached the $50 per share level. If it can then break that level, the next test would come at the $56 per share level. Perhaps the rising yearly profits will finally force the price ceilings to break. However, with the extensive history of trading in a range, investors should treat this as a range-bound stock until it proves itself otherwise.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Sealed Air Will Probably Beat on Earnings, But That Won't Save SEE Stock appeared first on InvestorPlace.
Sealed Air (SEE) is likely to benefit from savings from restructuring program, acquisitions and strong demand in Q2. However, higher input costs and currency headwinds remain woes.
Xylem's (XYL) second-quarter 2019 profitability will likely suffer from adverse impacts of forex woes, and high costs related to realignment initiatives, tariffs and growth investments.
Sealed Air (SEE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Sealed Air (SEE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.