Gift Boxes: Profits in the Packaging Industry - Zacks Industry Rank Analysis
December 19 2013 - 11:38AM
Zacks
‘Tis the season of shipping, shopping and sharing (and using the
term "‘tis"). Of course, each of these activities usually
requires an item be carefully wrapped, perhaps with some additional
festive flair, which is a fitting introduction to an industry which
has been "present"-ing quite a few surprises recently.
Nine companies make up the Containers – Paper/Plastic sector of the
Zacks Industry Rank, gaining 8 positions in the last week.
The industry now holds a rank of #28 out of 260 ranked
industries.
With 9 positive earnings revisions and only 2 negative, every
company in this sector, save one, has had their Zacks Rank revised
upward. Averaging positive Earnings per Share (EPS) surprises
of +33%, it’s apparent that things are looking merry, even if the
Christmas tree is destined to be a corrugated box.
With online shopping/shipping taking over retail sales, demand has
been strong. Add to this viral images like
Amazon’s (AMZN) package-delivering helicopter
drones, and the future of the packaging industry seems “air
apparent.”
Below are two companies which have moved into the prime position of
a Zacks Rank #1 (Strong Buy) from a “Buy” rating. With
projected prices still sitting comfortably above current market
value, there may still be time to ride an exceptional year a bit
longer. EPS surprises are expected to continue, and factoring
in individual performance while analyzing and industry’s strength
is beneficial in determining your investment strategy.
It’s well understood that young children and pets often prefer the
packaging to the actual present. Maybe they’re onto
something.
Packaging Corp. of America (PKG)
PKG was upgraded to a Zacks Rank #1 (Strong Buy) last week from #2
(Buy).
Packaging Corp. of America is one of the largest producers of
containerboard in the United States and also one of the largest
manufacturers of corrugated packaging products. The company
produces corrugated containers as well as the containerboard used
to manufacture corrugated containers.
PKG pays a dividend of 2.57% and its last earnings surprise was
2.25% with expected EPS growth of 15.24%. It reports its next
earnings on January 28, 2014.
Sealed Air Corp. (SEE)
SEE is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks
Rank #2 (Buy) last week. This company reports quarterly
earnings on February 18, 2014.
Sealed Air Corporation is a global leader in performance solutions
for food, protective and specialty packaging. They offer a broad
range of differentiated products to a diverse set of markets.
Their portfolio consists of widely recognized brands, including
Cryovac® brand food packaging solutions, Bubble Wrap® brand
cushioning and Diversey™ cleaning and hygiene solutions
SEE pays a dividend of 1.63% and its last earnings surprise was
14.71%.
AMAZON.COM INC (AMZN): Free Stock Analysis Report
PACKAGING CORP (PKG): Free Stock Analysis Report
SEALED AIR CORP (SEE): Free Stock Analysis Report
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