On Sep 10, Zacks Investment Research upgraded
Sealed Air Corporation
) to a Zacks Rank #1 (Strong Buy).
GLATFELTER (GLT): Free Stock Analysis Report
KAPSTONE PAPER (KS): Free Stock Analysis
ROCK-TENN CO (RKT): Free Stock Analysis
SEALED AIR CORP (SEE): Free Stock Analysis
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Why the Upgrade?
Share price and earnings estimates for Sealed Air have been
trending upward on the back of strong second-quarter 2013 results
reported on Aug 2. Moreover, shares of this specialty packaging
service provider to a diverse set of end markets attained its
52-week high of $31.20 on Aug 5. The long-term expected earnings
growth rate for this stock is 13.2%.
Sealed Air reported strong second-quarter 2013 results. Earnings
of 35 cents per share more than doubled from the year-ago
earnings of 16 cents per share and beat the Zacks Consensus
Estimate by 40%. The upbeat results were driven by strong growth
in Asia, Middle East, Africa and Turkey (AMAT) and Latin America
and modest growth in North America. Furthermore, margin expansion
in the Food & Beverage and Institutional & Laundry
divisions, benefits from pricing initiatives, and focus on
manufacturing and operational improvements added to the
Sealed Air maintained its guidance for fiscal 2013 adjusted
earnings in the range of $1.10 to $1.20 per share. Net sales are
expected to be within $7.7 to $7.9 billion. Adjusted EBITDA is
expected in the range of $1.01 to $1.03 billion.
Sealed Air's Integration & Optimization Program will generate
cost savings and benefits of approximately $195 million to $200
million by the end of 2014. The company announced an additional
restructuring plan with projected annualized savings of $80
million by 2015. Sealed Air's acquisition of Diversey in 2011 has
expanded its presence beyond specialty packaging solutions. This
combination is expected to further enhance Sealed Air's earnings
per share and free cash flow generation.
The Zacks Consensus Estimate for 2013 increased 4.3% to $1.21 per
share over the last 60 days. For 2014, the Zacks Consensus
Estimate moved north by 4.1% to $1.51 per share.
Other Stocks to Consider
KapStone Paper and Packaging Corporation
PH Glatfelter Co.
), both carrying a Zacks Rank #1, and
), with a Zacks Rank #2(Buy), are performing well and are
also worth considering.