StockCall Insight Into Sealed Air and MeadWestvaco: Packaging Stocks Hit New
LONDON, February 20, 2013
LONDON, February 20, 2013 /PRNewswire/ --
All products need packaging solutions for their proper storage and
distribution and this is where the packaging industry plays a crucial role.
The industry faces relatively inelastic demand and is more robust against
cyclical economic influences. Major packaging companies recently announced
their quarterly results and their stocks responded positively. Sealed Air
Corporation (NYSE: SEE) reported an increase in its revenue and offered
healthy guidance for its fiscal first quarter. Another major company
MeadWestvaco Corporation (NYSE: MWV) saw its stock jump after a major hedge
fund transaction. The industry offers good long-term investment opportunities.
StockCall has issued technical analysis and charting reports on Sealed Air and
MeadWestvaco. Download these free reports now at
MeadWestvaco Reports Q4 Numbers
MeadWestvaco generated good institutional interest as its shares were lapped
by Nelson Peltz of Trian Partners. According to 13F filing, Peltz bought 1.6
million shares of MeadWestvaco Corporation during the last quarter. Peltz is
known for his long-term, value driven investment techniques. Hence, this
purchase can be seen as a positive check mark for the stock. The stock made a
double figure jump after the news. With this purchase Trian Partners hold
about 1 percent stake in the company. Download the free research on Sealed Air
Corporation today by registering at
MeadWestvaco recently reported its fourth quarter earnings. While the company
met revenue estimates, it lagged behind EPS forecast. Its revenue for the
quarter stood at $1.33 billion and its EPS was reported at 7 cents per share,
lower than consensus estimate of 19 cents per share. While its margins also
deteriorated, the company offered good outlook. MeadWestvaco is expected to
earn $1.36 billion in revenue for its fiscal first quarter. Its EPS for the
quarter is likely to be at 34 cents per share.
MeadWestvaco's stock is up 10 percent this year so far. The stock is a robust
investment opportunity as it also offers 2.84 dividend yield. It recently
announced 25 cents per share in dividend.
Sealed Air Announces Dividend
Sealed Air is a leading manufacturer of bubble wrap products. The company
reported higher revenue of $1.98 billion for its fiscal fourth quarter,
surpassing consensus estimate of $1.94 billion in revenue. Its EPS at 34 cents
per share also was better-than-expected. Sealed Air's stock jumped after the
announcement of its results and hit its new 52-week high. However, the stock
is now trading at high multiples and the investors may wait for some pull back
to initiate a position. Sign up and have access to our free report on
MeadWestvaco Corp. at
Sealed Air's dividend yield stands at 2.46 percent and the company recently
announced 13 cents per share in cash dividend. The dividend is payable on
March 15 ^th . Sealed Air is also popular among institutional investors and it
saw net institutional purchases during its previous quarter. The company stock
is also being included in the portfolio of major investment firms like State
Street Capital and The Vanguard Group.
Sealed Air also faces certain challenges. The company's European operations
are experiencing lower demand situation. Sealed Air especially noted slack
demand in Southern Europe region. The company is also looking to contain its
costs as its raw material costs escalate, putting pressure on its margins.
Despite, these challenges, the stock is expected to perform well in the wake
of strong guidance.
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