Trade-Ideas LLC identified Sealed Air ( SEE) as a weak on high 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 $107.5 million.
- SEE has traded 492,583 shares today.
- SEE is trading at 10.60 times the normal volume for the stock at this time of day.
- SEE is trading at a new low 4.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. 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 (or avoid losses by trimming weak positions). 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in SEE with the Ticky from Trade-Ideas. See the FREE profile for SEE NOW at Trade-Ideas 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 33. 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 $10.3 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 2.09 days to cover. Shares are up 8.4% year-to-date as of the close of trading on Thursday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. 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.
- You can view the full Sealed Air Ratings Report.
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