StockCall Insight Into Sealed Air and MeadWestvaco: Packaging Stocks Hit New Highs

Wed Feb 20, 2013 8:04am EST

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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 15th.
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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