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With a market cap of $29.2 billion, International Paper Company (IP) is a global leader in renewable fiber-based packaging and pulp products. It operates through two main segments: Industrial Packaging and Global Cellulose Fibers, serving markets across North America, Latin America, Europe, and North Africa.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and International Paper fits this criterion perfectly. International Paper produces corrugated packaging that supports global commerce and pulp used in personal care products. With a diverse product portfolio, it caters to industries ranging from consumer goods to construction and textiles.
However, the global paper and packaging company has fallen 9.3% from its 52-week high of $60.36. International Paper shares have risen marginally over the past three months, outpacing the broader Nasdaq Composite's ($NASX) 9.8% decline during the same period.
Longer term, IP stock has gained 1.7% on a YTD basis, outperforming NASX's 7.9% decrease over the same period. Moreover, International Paper has soared 39% over the past 52 weeks, compared to NASX's 8.5% gain.
Despite the recent downturn, IP has mostly traded above both its 50-day and 200-day moving averages since last year.
Despite reporting a better-than-expected Q4 2024 adjusted loss of $0.02 per share, shares of International Paper fell 1.6% on Jan. 30 due to a revenue miss, with sales of $4.6 billion falling short of analyst expectations. Investors were also concerned about the worsening performance of the Global Cellulose Fibers segment, which saw its losses nearly double to $250 million, driven by high energy costs, mill reliability issues, and increased planned outage expenses.
Nevertheless, in contrast, rival Smurfit Westrock Plc (SW) has underperformed International Paper, declining 17.5% on a YTD basis.
Despite IP's outperformance over the past year, analysts remain cautiously optimistic about its prospects. Among the 11 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $60.14.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
