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Based in Lake Forest, Illinois, Packaging Corporation of America (PKG) is a top manufacturer of containerboard and corrugated packaging products. Worth a market cap of $20.5 billion, Packaging Corporation plays a vital role in the packaging industry, offering a wide range of high-quality products, including shipping containers, packaging supplies, and custom design solutions for businesses across various sectors.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Packaging Corporation of America fits right into that category.
Shares of PKG are trading 8.8% below their 52-week high of $250.82, which they hit on Nov. 25. The stock has gained 6.4% over the past three months, underperforming the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 17% return over the same time frame.
In the longer term, PKG has climbed 20.6% over the past six months, and the shares have gained 39.8% over the past 52 weeks. In comparison, the XLY has gained 29.2% and 30.6% over the respective time frames.
PKG has been trading above its 200-day moving average since the previous year but has been trading below its 50-day moving average since couple of trading sessions.
PKG stock rose 5.5% after its Q3 earnings release on Oct. 22. The company surpassed its top-line and bottom-line estimates, thanks to strong growth in its packaging segment, driven by higher volumes. Lower freight and logistics costs also played a key role in boosting performance.
Highlighting contrast in performance, PKG has underperformed its rival, International Paper Company (IP), which has gained 50.4% over the past year.
Analysts remain moderately optimistic about PKG’s prospects. The stock has a consensus rating of “Moderate Buy” from eight analysts in coverage. The mean price target of $241.86 indicates that the stock trades at a premium of 5.7% from prevailing price levels.
