Originally published on Best Stocks Category: best stocks to buy nowIf you’ve ever purchased anything from a drug store, department store, or even trip to the local dollar store, you’ll understand that products come in packages. For one reason or another, companies feel that their product cannot be sold unless it has a unique package — something that will catch the eye of potential buyers. This article explores some of the best stocks to buy if you’re looking for growth opportunities in the packaging sector. While these stocks may not be cheap at this time, they are all growing companies with plenty of expansion potential. Sealed Air (SEE) Sealed Air is a global packaging company best known for producing Bubble Wrap. They have a full suite of packaging products, including materials like food service supplies, engineered films, home and auto care products, medical supplies, and more. On the surface, Sealed Air doesn’t look like an exciting growth story. After all, the company has been around for 50 years, and its stock price remained relatively flat. But with a new CEO now at the helm, Sealed Air is poised to become a high-growth stock over the next decade. The company has spent the past few years repositioning its growth business, including divesting underperforming businesses, cutting costs, and re-investing that cash into higher-growth segments. Sealed Air has a strong presence in the packaging industry, but its growth has been limited by weak demand in key end-markets, like retail and consumer goods. However, those trends look poised to turn around, and Sealed Air’s new strategy has put them in a great position to capitalize. Silgan Holdings (SLGN) Silgan is another packaging giant, and they have a dominant presence in food and industrial packaging. The company is best known for its consumer food packaging, like the plastic containers and lids found in delis, restaurants, and supermarkets across the country. Silgan’s major product lines include consumer food packaging (51% of sales), industrial packaging (21%); engineered films (17%); and engineered resins and chemicals (3%). The company is geographically diverse, with operations in Asia, the Americas, Europe, and Africa. Silgan has been a high-quality, high-growth stock for many years. The company has grown earnings per share at a healthy clip for over a decade, and analysts expect that growth to continue. Looking ahead, Silgan’s biggest growth opportunity is in emerging markets. While the company already generates a significant percentage of sales from that region, Silgan has much room to grow its business in Southeast Asia, Africa, and South America — regions that are rapidly growing their food and beverage industries. Sonoco Products Company (SON) Sonoco is a packaging company best known for its industrial packaging, like shipping and packaging bags and tubes. While their customer base is primarily in the industrial market, Sonoco also has a small consumer business. The company’s major product lines include industrial packaging (77% of sales), consumer packaging (17%); engineered films (4%); and engineered resins (1%). Sonoco is highly diversified, with operations in over 40 countries across six continents. In addition, the company has been a steady performer for years, with a record of steady earnings growth. As a result, Sonoco has consistently grown earnings per share, even during economic downturns. Additionally, Sonoco has a long record of paying increasing dividends to shareholders over the past few decades. However, Sonoco has struggled recently, with sales and earnings coming in under expectations. Brady (BRC) Brady’s core business is manufacturing and selling office supplies, but they also have a significant presence in the packaging industry. Brady is one of the world’s top manufacturers of labels and signs. Brady’s major product lines include labels (39% of sales), office supplies (30%); engineered films (12%); and engineered resins (11%). The company operates in the Americas, Europe, Asia, and Australia. Brady is one of the leading packaging stocks, but it has fallen out of favor with investors lately. That’s likely because the company has been focusing on its core business, which has meant less attention to its packaging operations. As a result, Brady’s packaging business has been growing, but the company has struggled to drive the growth investors expect from them. Conclusion As you can see, the packaging sector is a diverse field with plenty of potentials. It is also a very large and growing industry, with several companies poised for massive growth in the coming years. So if you’re looking for cheap stocks with high growth potential, you should consider the packaging sector.