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 $86.3 million.
  • SEE has traded 5.4 million shares today.
  • SEE traded in a range 201.1% of the normal price range with a price range of $2.00.
  • SEE traded below its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 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 1.2%. SEE has a PE ratio of 32. Currently there are 4 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 1.8 million shares per day over the past 30 days. Sealed Air has a market cap of $10.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.31 and a short float of 2.4% with 2.69 days to cover. Shares are up 18.1% 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, 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:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • SEALED AIR CORP reported significant earnings per share improvement 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 $1.63 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.63).
  • 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 86.3% when compared to the same quarter one year prior, rising from $66.30 million to $123.50 million.
  • 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.
  • 37.89% 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 7.04% is above that of the industry average.

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