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

Feb 20, 2013, 08:00 ET from

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.

About is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at