Revisiting Sealed Air’s (SEE) Valuation After Its Recent 90-Day Share Price Rebound

Sealed Air (SEE) has been quietly grinding higher this year, and the stock’s recent pullback from its past 3 months rally is giving investors a fresh chance to reassess the packaging specialist.

See our latest analysis for Sealed Air.

The latest dip leaves Sealed Air’s share price at about $41.30, with a strong 90 day share price return of just over 23 percent, which suggests momentum is still broadly positive despite a weaker three year total shareholder return.

If Sealed Air’s rebound has you thinking more broadly about cyclicals and defensives, it could be a good moment to explore fast growing stocks with high insider ownership for other potential ideas.

With earnings steadily improving and the share price still trading below analyst targets, the key question now is whether Sealed Air remains undervalued, or if the recent rebound means the market is already pricing in future growth?

Most Popular Narrative: 8.5% Undervalued

With Sealed Air last closing at $41.30 against a narrative fair value of $45.13, the valuation gap hinges on how sustainable its earnings improvement really is.

The transformation in capital allocation prioritizing debt reduction and disciplined capex, combined with substantial cost takeout and productivity improvements (over $90 million targeted for the year), is bolstering net earnings resilience and positioning the company for higher earnings leverage as volume growth resumes with recovery in protein markets and e-commerce expansion.

Read the complete narrative.

Want to see what ties this leaner cost base to a richer valuation? The narrative leans on carefully staged revenue growth, sharper margins, and a lower future earnings multiple. Curious how those moving parts combine to justify a higher fair value than today’s price?

Result: Fair Value of $45.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a prolonged North American beef downturn or persistent pricing pressure in protective packaging could derail margin expansion and weaken the bullish valuation case.

Find out about the key risks to this Sealed Air narrative.

Build Your Own Sealed Air Narrative

If you see things differently or simply prefer your own due diligence, you can build a personalised Sealed Air story in just a few minutes: Do it your way.

A great starting point for your Sealed Air research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, secure your next potential opportunity by using the Simply Wall Street Screener to uncover targeted stock ideas that fit your strategy.

• Capture early-stage upside in fast movers by scanning these 3633 penny stocks with strong financials that already show solid financial foundations instead of pure speculation.
• Position your portfolio at the heart of the next productivity boom by focusing on these 29 healthcare AI stocks transforming medicine and patient outcomes.
• Boost your income potential with these 12 dividend stocks with yields > 3% that combine attractive yields with the financial strength to keep paying shareholders through cycles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com