Weekly Pick: SON
Holding multi-timeframe support
Weekly Pick
SON is high Tier 1 in my scoring model and the setup checks several important boxes I look for: strong earnings reaction, institutional participation, multi-time frame alignment, and a controlled pullback that held trend support in a volatile broad market tape.
Sunoco Products Co
Sonoco manufactures industrial and consumer packaging. The company produces fiber-based packaging, rigid paper containers, protective packaging, and industrial paperboard used across food, consumer goods, and manufacturing supply chains.
They supply packaging and protective shipping solutions to many of the world’s largest consumer goods manufacturers across food, household products, healthcare logistics, and industrial supply chains, with additional exposure to government and defense-related transport packaging.
It’s a steady industrial operator with global customers and long-standing institutional sponsorship.
Fundamentals and Ownership
Market cap $5.3B
Current p/e 13.43 | Forward p/e 8.12
Dividend yield 4%
Institutional ownership is high at 89.5%
4.3% Short float
SON carries moderate leverage typical of industrial packaging companies, with roughly $3–3.5B of long-term debt supported by steady cash flow and a long history of disciplined capital allocation, including dividends and buybacks.
Consistent long term revenue generation.
Technicals
SON put in a strong PEG candle with their ER on 2/17. Since then price has pulled back and consolidated above the 50EMA on the Daily.
On the Weekly, the 8EMA just crossed above the 200EMA for the first time since mid-2024.
On the Monthly, price broke above the 50EMA, retested and held.
Proximity to major support on all time frames gives me a clear risk-management level. If the stock breaks below support the setup is invalidated and I’ll move on.
Daily
Weekly
Monthly
Risks
The main risk here is market volatility. In a macro-driven environment even the strongest stocks are vulnerable to a temporary deep downdraft. Stock price correlation has been rising and that’s a red flag. So I’ll be managing all my open positions tightly. I’m again watching oil prices, Iran war headlines and how we open on Monday before taking on any new risk. I’m still very heavy with cash and I’m taking profits on open positions very quickly when I can.
How I’m Trading It
I’m trading SON primarily with shares and I may layer in some calls but option liquidity is lower and spreads are wider than I prefer.
A Brief Comment on the Broad Market
I posted this chart mid-week but worth adding here. The S&P is still very heavily extended above the 200EMA on the Weekly. Oil price spikes are compounding the downside risk and the chart shows the depth of recent pullbacks. It could get ugly quickly so keep your stops tight and fight the urge to over-trade. There will be some really good risk/reward setups when the dust finally settles but you’ll need cash to take advantage. I keep an active watch list of dozens of tickers and price alerts for pullbacks to major EMA support on longer time frames. I also keep a watch list of stocks that display relative strength in a weak tape - those are the names that usually become the next market leaders.
I trade what I post.
Weekly Picks and occasional Trade Notes for subscribers.
This isn’t an alert service, and I’m not your financial advisor.
Just sharing the trades I take. Putting it out in public keeps me disciplined.
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