Container maker Sealed Air has set up in a new base with its stock near a buy point. Earnings of this maker of Bubble Wrap and member of the IBD 50 have accelerated powerfully the past three quarters, and analysts see continued strong growth ahead.
Charlotte, NC-based Sealed Air makes packaging and packaging systems for food, industrial, medical and consumer applications.
It ranks No. 2 in the IBD Containers-Packaging group, according to Stock Checkup. The group itself ranks No. 49 out of IBD's 197 industry groups ranked by stock price performance. The group is on the rise, having ranked No. 63 three weeks ago and 78 six weeks ago.
Sealed Air's earnings growth has ramped up in the past four quarters, rising 4%, 5%, 26% and 44%. The latest quarter's earnings per share beat analyst estimates by 20%. Wall Street sees profit rising 25% in the current quarter and 17% for the full year.
The company carries an EPS Rating of 95, near the upper end of the 1-99 scale.
Sealed Air's earnings growth has come as it's introduced digital printing and other innovations, which have helped offset higher costs for materials.
On April 28, Sealed Air announced the introduction of prismiq — a digital packaging brand with a portfolio of solutions for design services, digital printing and smart packaging.
"The future of digital packaging and graphics is here," said Ted Doheny, president & CEO of Sealed Air, in the announcement. "Prismiq, powered by our state-of-the-art digital printing technology is creating game-changing value for customers, enabling touchless automation both in our facilities and our customers' operations, and making sustainability for packaging real."
In efforts to improve its sustainability profile, the company noted in its Q1 earnings release that it is committed to making all of its products recyclable or reusable by 2025 and to reaching zero carbon emissions by 2040.
Sealed Air Stock Near A Buy Point
SEE stock has formed a flat base that started when the stock peaked at an all-time high of 70.72 on March 29, according to MarketSmith chart analysis. The buy point is 70.82.
SEE jumped 4% on Wednesday after reporting its big increase in Q1 earnings. The price leap took the stock near a buy point and above its 50-day moving average. But the stock slid back below the line on Thursday as the major indexes reversed lower under the weight of higher interest rates and oil prices.
The stock is still within 10% of the buy point. A positive sign can be seen on the MarketSmith weekly chart: The relative strength line is lit up with a blue dot. Blue dots are given to stocks whose RS lines are at new highs while the stock is in or breaking out of a base.
Stamford, Conn.-based Silgan Holdings, which ranks No. 4 in the same industry group, is also a member of the IBD 50 and setting up in a flat base.
