Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $88.3 million.
- SEE has traded 576,336 shares today.
- SEE is trading at 3.04 times the normal volume for the stock at this time of day.
- SEE crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on SEE:
Sealed Air Corporation, through its subsidiaries, provides food safety and security, facility hygiene, and product protection solutions worldwide. The company operates through three segments: Food Care, Diversey Care, and Product Care. The stock currently has a dividend yield of 1.7%. SEE has a PE ratio of 39.2. Currently there are 4 analysts that rate Sealed Air a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Sealed Air has been 2.0 million shares per day over the past 30 days. Sealed Air has a market cap of $7.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.32 and a short float of 3.1% with 2.53 days to cover. Shares are down 1.6% year-to-date as of the close of trading on Monday.
rates Sealed Air as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these 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:
- SEALED AIR CORP has improved earnings per share by 12.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SEALED AIR CORP turned its bottom line around by earning $0.41 versus -$8.39 in the prior year. This year, the market expects an improvement in earnings ($1.68 versus $0.41).
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.7%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 67.35% to $170.20 million when compared to the same quarter last year. In addition, SEALED AIR CORP has also vastly surpassed the industry average cash flow growth rate of -5.02%.
- 36.61% is the gross profit margin for SEALED AIR CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.05% trails the industry average.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Sealed Air Ratings Report.