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. NEW YORK ( TheStreet) -- Sealed Air Corporation (NYSE: SEE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- Powered by its strong earnings growth of 102.80% and other important driving factors, this stock has surged by 91.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SEE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 69.56% to $212.80 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 5.16%.
- SEALED AIR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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 swung to a loss, reporting -$8.33 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus -$8.33).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Containers & Packaging industry average, but is greater than that of the S&P 500. The net income increased by 103.1% when compared to the same quarter one year prior, rising from -$1,232.40 million to $37.70 million.