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.

Trade-Ideas LLC identified Sealed Air ( SEE) as a "barbarian at the gate" (strong stocks crossing above resistance 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 $111.0 million.
  • SEE has traded 97,398 shares today.
  • SEE traded in a range 282.1% of the normal price range with a price range of $2.45.
  • SEE traded above 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 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 1.1%. SEE has a PE ratio of 37. Currently there are 3 analysts that rate Sealed Air a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Sealed Air has been 1.9 million shares per day over the past 30 days. Sealed Air has a market cap of $10.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.49 and a short float of 3.7% with 3.72 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Tuesday.

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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 impressive record of earnings per share growth, compelling growth in net income, expanding profit margins, good cash flow from operations and solid stock price performance. 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:
  • SEALED AIR CORP has improved earnings per share by 39.4% 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 two years. We feel that this trend should continue. During the past fiscal year, SEALED AIR CORP increased its bottom line by earning $1.20 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $1.20).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $70.90 million to $97.20 million.
  • 39.09% 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. Along with this, the net profit margin of 5.56% is above that of the industry average.
  • Net operating cash flow has significantly increased by 134.20% to $319.00 million when compared to the same quarter last year. Despite an increase in cash flow of 134.20%, SEALED AIR CORP is still growing at a significantly lower rate than the industry average of 4793.92%.
  • Powered by its strong earnings growth of 39.39% and other important driving factors, this stock has surged by 56.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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