Sealed Air (SEE) Surges 12.8%: Is This an Indication of Further Gains?

Sealed Air (SEE) shares rallied 12.8% in the last trading session to close at $26.98. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.9% loss over the past four weeks.

Sealed Air’s shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). SEE serves diverse industries with operations in 117 countries/territories.

This packaging company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -14.1%. Revenues are expected to be $1.27 billion, down 4.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Sealed Air, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SEE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Sealed Air belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, AptarGroup (ATR), closed the last trading session 7.6% higher at $143.75. Over the past month, ATR has returned -9.6%.

AptarGroup's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.16. Compared to the company's year-ago EPS, this represents a change of -7.9%. AptarGroup currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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