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Sealed Air: A Defensive Business With Continued Innovation (NYSE:SEE)

Sealed Air: A Defensive Business With Continued Innovation (NYSE:SEE)

I am continuing my series of articles looking at stocks that are more “recession-resistant” in order to build up the defensive side of my portfolio. Sealed Air (SEE) came in one of my screens, and I wanted to do some due diligence. I believe the company is a high-quality, safe business that should be considered when talking about long-term investments.

Just a brief background on the company, Sealed Air is a packaging company focused on food (including raw foods) and other products. The company was actually the pioneer of Bubble Wrap, which is one of its main brands alongside namesake Sealed Air, Cyrovac, and Autobag. Bubble Wrap is that plastic with little air pockets used for packaging, and the company has continued to create innovative products along this vein.

The company operates two main segments, namely the Food segment and the Protective segment. The Food segment focuses on packaging materials and equipment to properly “seal” and package raw food products (e.g., that cut of steak at the grocery store). Proper packaging enhances food safety and extends shelf life. In 2019, the Food segment made up approximately 60% of total revenue. The Protective segment creates those plastic packaging with air in them that are designed to protect valuable goods while in transit. You may have seen them when you opened your Amazon (AMZN) package. This segment benefits from the current e-commerce trends, as more products are being shipped directly to consumers, thus increasing the need for protective packaging. In 2019, this segment represented 40% of total revenues. In each segment, the company competes against other manufacturers that create similar products or packaging made with other types of material (like foam, paper, plastic, etc.)

The company’s long-term competitive advantage lies with the scale of its operations and its continued innovation. Sealed Air

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Here are 3 things to watch for as earnings season kicks off amid continued economic recovery, according to LPL

Here are 3 things to watch for as earnings season kicks off amid continued economic recovery, according to LPL

NYSE trader


  • With earnings season set to officially kick off on Tuesday, LPL is out with a list of three things to watch for in company results.
  • LPL expects management teams to instill confidence in investors as an economic recovery from COVID-19 is well underway.
  • “Mostly better-than-expected economic data during the quarter is a positive indication of earnings surprises,” LPL noted.
  • Here’s what to watch for in the upcoming third quarter earnings season, according to LPL.
  • Visit Business Insider’s homepage for more stories.

Investors will have a lot to digest over the coming weeks as third quarter earnings season kicks off amid an ongoing economic recovery from the COVID-19 pandemic.

According to FactSet, consensus estimates call for a 20% year-over-year decline in earnings per share, but LPL expects that figure to be “quite a bit better,” according to a note on Monday.

Over the past three months, consensus estimates have been improving for third quarter earnings, rising by about 4%, LPL observed. 

This represents a “good sign that companies may be able to deliver more than the typical upside,” LPL said, adding that it expects management teams “to instill confidence” in investors that the earnings rebound might materialize. 

US economic data in recent months is also supportive of this season’s corporate earnings, LPL explained. “Mostly better-than-expected economic data during the quarter is a positive indication of earnings surprises,” LPL said.

Here are three things to watch out for this earnings season, according to LPL.

Read more: A $2 billion fund manager says market volatility is here to stay for the long-term. He breaks down his best recommendations for the new normal – including 4 of his favorite stocks.

1. The impact of COVID-19

“The increase in analysts’ earnings estimates reflects increased confidence in the outlook, even with

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