Trade-Ideas LLC identified Sealed Air ( SEE) as a "roof leaker" (crossing below 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 $141.9 million.
- SEE has traded 795,397 shares today.
- SEE is trading at 1.54 times the normal volume for the stock at this time of day.
- SEE crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend. 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 1.4%. SEE has a PE ratio of 29. 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 1.9 million shares per day over the past 30 days. Sealed Air has a market cap of $9.3 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 2.7% with 1.62 days to cover. Shares are up 9.1% year-to-date as of the close of trading on Monday. 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 notable return on equity, solid stock price performance 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:
- 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.
- SEALED AIR CORP reported flat earnings per share in the most recent quarter. 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 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).
- 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, despite the company's weak earnings results. 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.
- 38.87% is the gross profit margin for SEALED AIR CORP which we consider to be strong. Regardless of SEE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SEE's net profit margin of 5.77% compares favorably to the industry average.
- SEE, with its decline in revenue, slightly underperformed the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 8.9%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- You can view the full Sealed Air Ratings Report.
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