Sealed Air Corporation (SEE - Free Report) recently entered into an agreement with Kuraray America, Inc. (“Kuraray”) — a Japanese chemical company — to provide renewable packaging option in the United States, Canada and Mexico by utilizing Plantic bio-based resins. This deal will assist Sealed Air to enhance its portfolio of sustainable solutions and benefit consumers, retailers and processors by addressing food waste by extending the shelf-life and maintaining freshness of food.
Plantic materials are contributing significantly to improve the performance of bio-based barrier packaging as these consist up to 80% renewable material which can be recycled. In addition, the materials provide a highly effective oxygen barrier which is cost competitive compared to conventional materials. Plantic’s outstanding sustainability metrics also remains a catalyst.
By employing Kuraray’s Plantic bio-based resins, Sealed Air will be able to offer food packaging materials to package perishable foods such as poultry, beef and seafood. This contract is in sync with Sealed Air’s commitment to renewability, recyclability and innovation.
Notably, Sealed Air’s top line will be supported by elevated demand for its core product portfolio, recently-introduced innovations and accelerated growth in the global protein market, along with the e-Commerce sector. Additionally, the company believes market differentiation of revolutionary innovation is gaining significant traction in each of its divisions.
Over the past year, Sealed Air has grossly underperformed the industry with respect to price performance. While the stock has dipped 0.6%, the industry recorded growth of 4.1%.
Zacks Rank & Other Key Picks
Sealed Air carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the same space include Axon Enterprise, Inc (AAXN - Free Report) , Caterpillar Inc. (CAT - Free Report) and Terex Corporation (TEX - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise has a long-term earnings growth rate of 25%. Its shares have appreciated 172%, over the past year.
Caterpillar has a long-term earnings growth rate of 13.3%. The company’s shares have been up 46% in the past year.
Terex has a long-term earnings growth rate of 21%. The stock has gained 17% in a year’s time.
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