SE SEE Sealed Air Loading... : Bullish and Bearish Analyst Opinions

Interruptions inflate cost of plastics, pharmaceuticals, and other goods, slowing global manufacturing. Petrochemical inputs are the primary cost driver for plastic packaging companies. A sudden spike in raw material costs will compress their gross margins before they are able to pass those costs onto consumers, hurting quarterly earnings. SHORT. Companies highly dependent on plastic resins for manufacturing will suffer immediate margin compression. Companies with strong pricing power or robust raw material hedging programs may successfully pass costs to consumers without losing volume.