Sealed Air Outlook - A Cautiously Optimistic Technical and Mixed Fundamental Picture

Market Snapshot

Sealed Air (SEE) is showing a cautiously optimistic technical outlook with an internal diagnostic score (0-10) of 7.11, but fundamentals are mixed, with an overall score of 3.67.

News Highlights

• EPE USA’s sustainable packaging moves signal growing demand for eco-friendly packaging solutions, which could indirectly benefit Sealed Air, a major player in the sector. These developments are encouraging for the broader market.
• Public Employees Retirement System of Ohio reduced its stake in Packaging Co. of America (PKG), indicating investor caution in the packaging industry. While not directly about Sealed Air, this suggests a broader trend of consolidation or shifting investor priorities.
• China’s factory activity slightly improved in May, with a PMI of 49.5, still below the 50 threshold. This weak growth may impact demand for packaging materials in China, a key market for global players like Sealed Air.

Analyst Views & Fundamentals

Analysts have been mixed in their views, with a simple average rating of 4.00 and a weighted historical performance rating of 0.00. The only active analyst, Jeffrey J Zekauskas of JP Morgan, recently upgraded Sealed Air to "Buy" on September 9, 2025. However, the historical win rate for that analyst is 0.00%, which raises questions about the reliability of this call.

Against this, the stock is currently up 3.80% in the short term, suggesting a mismatch between market sentiment and analyst expectations.

Key Fundamental Factors

• Annualized Return on Equity (ROE): 52.38% (internal diagnostic score: 2)
• Total Assets Growth Rate: 3.21% (internal diagnostic score: 2)
• Equity Multiplier: 7.60 (internal diagnostic score: 4)
• Operating Cycle: 109.07 days (internal diagnostic score: 0)
• Gross Profit Margin: 30.60% (internal diagnostic score: 0)
• Net Cash Flow from Operating Activities / Operating Revenue: 6.46% (internal diagnostic score: 3)

The internal diagnostic scores suggest that while Sealed Air has decent leverage and ROE, it lags in operating efficiency and gross margin, two critical areas for a packaging company in a competitive market.

Money-Flow Trends

Sealed Air is seeing positive money flow across all investor categories. The overall inflow ratio is 51.66%, indicating strong buying pressure.

• Large- and extra-large investors: inflow ratio is over 51%, suggesting institutional confidence in the stock.
• Small investors (retail): inflow ratio of 51.04%, showing retail participation is also positive.
• Block trades: inflow ratio of 51.75%, reinforcing that large orders are contributing to the buying momentum.

This across-the-board positive inflow suggests a growing consensus among both retail and institutional investors that Sealed Air may be entering a more favorable phase.

Key Technical Signals

Sealed Air’s technical outlook is cautious but optimistic, with the chart showing 1 bullish and 0 bearish signals over the past 5 days. The dominant pattern is a Marubozu White candle, a strong bullish signal.

Internal Diagnostic Scores for Key Indicators

• Marubozu White: internal diagnostic score of 7.82 – a strong indicator of upward momentum.
• WR Overbought: internal diagnostic score of 6.87 – suggesting the stock may be near overbought levels but still in a rising trend.
• Bullish Engulfing: internal diagnostic score of 6.63 – a moderate bullish signal that supports the overall trend.

Recent Chart Patterns

Over the past 5 days, Sealed Air has formed key bullish patterns on the following dates:

• August 21, 2025: Marubozu White pattern
• August 25, 2025: WR Overbought signal
• August 29, 2025: Bullish Engulfing pattern
• September 8, 2025: WR Overbought again

These recurring bullish signals, particularly the Marubozu White, suggest the stock is in a rising technical phase with strong internal momentum.

Conclusion

Sealed Air is showing mixed signals between fundamentals and technicals. While the internal diagnostic score (7.11) is strong and the technical chart is bullish, the fundamentals remain weaker, with a score of 3.67. The positive money flow and recent analyst activity suggest the stock may be gaining traction. However, investors should monitor the next earnings report for clarity on fundamentals before committing to a long position.

Actionable Takeaway: Consider watching Sealed Air’s upcoming earnings report and evaluating how it aligns with the bullish technical signals and inflow trends.