The packaging market shows significant promise, driven by the growing demand for eco-conscious solutions. This trend fosters industry-wide innovation and collaboration, creating lucrative investment opportunities.

As the industry adapts to meet sustainability goals, considering strong sustainable packaging stocks like Sealed Air Corporation (SEE), Crown Holdings, Inc. (CCK), and Sonoco Products Company (SON) could be a smart move.

With a global focus on sustainability, governments enforce accountability through Extended Producer Responsibility (EPR) programs, while businesses adopt technology to enhance recycling and supply chain efficiency. Driven by biodegradable options like mycelium and seaweed, the sustainable packaging market, valued at $9.67 billion in 2024, is expected to grow at a 6.43% CAGR through 2035.

Moreover, consumer preference for recyclable and reusable materials, coupled with global bans on single-use plastics, is driving significant market growth. Additionally, AI advancements enhance quality control, efficiency, and recyclability, reducing waste and costs. Consequently, the packaging market, valued at $1.14 trillion in 2024, is projected to grow to $1.38 trillion by 2029, with a CAGR of 3.89%.

Let’s take a closer look at the fundamentals of the three featured Industrial – Packaging stocks, beginning with the third choice.

Stock #3: Sealed Air Corporation (SEE)

SEE provides packaging solutions in the Americas, Europe, the Middle East, Africa, Asia, Australia, and New Zealand. It operates through two segments: Food and Protective.

In terms of the trailing-12-month levered FCF margin, SEE’s 8.46% is 64.6% higher than the 5.14% industry average. Similarly, its 9.41% trailing-12-month Return on Total Capital is 97.4% higher than the 4.77% industry average. Also, the stock’s 0.73x trailing-12-month asset turnover ratio is 11.2% higher than the 0.66x industry average.

During the fiscal third quarter that ended on September 30, 2024, SEE’s net sales amounted to $1.35 billion, with adjusted EBITDA standing at $276 million. Additionally, its adjusted net earnings increased 3.8% from the year-ago value to $115.7 million, and its adjusted EPS grew 2.6% year-over-year to $0.79.

Street expects SEE’s revenue for the quarter ending June 30, 2025, to increase marginally year-over-year to $1.35 billion. Its EPS for fiscal 2025 is expected to grow 2.4% year-over-year to $3.15. SEE surpassed the Street EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 9.4% to close the last trading session at $36.24.

SEE’s promising outlook is reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has a B grade for Value and Quality. It is ranked #8 out of 18 stocks in the A-rated Industrial – Packaging industry. To access additional ratings for SEE’s Growth, Momentum, Stability, and Sentiment, click here.

Stock #2: Crown Holdings, Inc. (CCK)

CCK and its subsidiaries engage in the packaging business internationally. It operates through the Americas Beverage, European Beverage, Asia Pacific, and Transit Packaging segments. The company manufactures and sells recyclable aluminum beverage cans and ends, glass bottles, steel crowns, aluminum caps, non-beverage cans, and aerosol cans and closures.

On October 24, 2024, CCK announced a cash dividend of $0.25 per share, payable on November 27, 2024, to shareholders of record by November 14, 2024.

In terms of the trailing-12-month EBIT margin, CCK’s 11.76% is 12% higher than the 10.49% industry average. Likewise, its 10.12% trailing-12-month levered FCF margin is 96.8% higher than the 5.14% industry average. Furthermore, the stock’s 0.80x trailing-12-month asset turnover ratio is 21% higher than the 0.66x industry average.

CCK’s net sales for the fiscal third quarter that ended on September 30, 2024, grew marginally year-over-year to $3.07 billion, while its income from operations stood at $444 million, up 18.7% compared to the prior-year quarter. The company’s adjusted net income and earnings per share each increased 15% year-over-year to $238 million and $1.99, respectively.

For the quarter ending December 31, 2024, CCK’s EPS and revenue are expected to increase 22.9% and 1.3% year-over-year to $1.52 and $2.90 billion, respectively. CCK surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 20% to close the last trading session at $93.02.

CCK’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system.

It has an A grade for Growth. Within the same industry, it is ranked #5. To see CCK’s Value, Momentum, Stability, Sentiment, and Quality ratings, click here.

Stock #1: Sonoco Products Company (SON)

SON and its subsidiaries design, develop, manufacture, and sell various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates through the Consumer Packaging and Industrial Paper Packaging segments.

On October 15, 2024, SON announced a $0.52 quarterly dividend per share, payable on December 10, 2024, with a 3.8% yield, marking 41 consecutive years of increases.

SON’s trailing-12-month Return on Common Equity of 11.98% is 104.7% higher than the industry average of 5.85%. Likewise, its trailing-12-month Return on Total Capital and Return on Total Assets of 6.01% and 3.19% are 26.2% and 29.2% higher than the industry averages of 4.76% and 2.47%, respectively.

For the fiscal third quarter that ended on September 29, 2024, SON’s net sales amounted to $1.68 billion, while its adjusted operating profit stood at $210.67 million. Its adjusted attributable net income and earnings per share for the quarter were $147.89 million and $1.49, respectively, each up 2.1% from the prior-year value.

Analysts expect SON’s EPS for the quarter ending December 31, 2024, to increase 18.3% year-over-year to $1.21. Its revenue for the quarter ending March 31, 2025, is expected to grow marginally year-over-year to $1.65 billion. SON surpassed the EPS estimates in three of the trailing four quarters. Over the past month, the stock has gained 3.3%, closing the last trading session at $51.31.

SON’s POWR Ratings reflect its bright prospects. It has an overall rating of B, equating to a Buy in our proprietary rating system.

SON has a B grade for Stability. Within the Industrial – Packaging industry, it is ranked #4. Click here for the additional POWR Ratings of SON (Growth, Value, Momentum, Sentiment, and Quality).

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CCK shares were trading at $93.02 per share on Thursday morning, up $0.80 (+0.87%). Year-to-date, CCK has gained 2.22%, versus a 27.18% rise in the benchmark S&P 500 index during the same period.

About the Author: Abhishek Bhuyan

Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments. More...

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