Bullish Sign - Packaging Stocks

There are numerous ways to determine if the economy is doing well. One is the performance of the stock market. However, there can be a disconnect between the two as the market is often a leading indicator.

Withing the stock market I find certain sectors to be good indicators at the underlying strength of the true economy. One such sector is the Packaging & Container stocks. The chart below is the performance over the last year of the sector and as you can see it is near an all-time high it hit last week and today it is up 1%.

A couple upgrades today have the sector on the rise Owens Illinois ($OI) and Rock-Tenn Co. ($RKT). Both stocks trade with PEG ratios near 1.0, making them attractive fundamentally and both have very strong charts. If you believe in the global economic rebound you may want to check out the 2 companies.