Trade-Ideas LLC identified

Sealed Air

(

SEE

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sealed Air as such a stock due to the following factors:

  • SEE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.4 million.
  • SEE has traded 188,747 shares today.
  • SEE traded in a range 209.3% of the normal price range with a price range of $1.71.
  • SEE traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on SEE:

Sealed Air Corporation provides food safety and security, facility hygiene, and product protection solutions worldwide. The stock currently has a dividend yield of 1.3%. SEE has a PE ratio of 3. Currently there are 5 analysts that rate Sealed Air a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sealed Air has been 1.7 million shares per day over the past 30 days. Sealed Air has a market cap of $9.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.33 and a short float of 2.3% with 3.06 days to cover. Shares are up 10.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sealed Air as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market, SEALED AIR CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • SEALED AIR CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEALED AIR CORP increased its bottom line by earning $1.63 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.63).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 8.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 38.87% is the gross profit margin for SEALED AIR CORP which we consider to be strong. Regardless of SEE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SEE's net profit margin of 5.77% compares favorably to the industry average.
  • SEE has underperformed the S&P 500 Index, declining 6.37% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

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