Received a package from Amazon lately? Most likely 52% of the box it came in was made of recycled materials, according to Packaging Corporation Of America. Cars, home and business electricity and other markets are increasingly energy-efficient. Packaging is heading that way too. As the economy awakens from the pandemic slumber, more packages are shipped every day. And Packaging Corporation is a leader in making those packages. On Tuesday the Relative Strength (RS) Rating, for Packaging Corp. stock climbed to 81, up from 78 the prior day.
Packaging Corp. just topped an important benchmark. Market research shows that the best growth stocks typically have an RS Rating north of 80 in the early stages of their moves.
Packaging Corp. Profit Growth Strong
Among its other key ratings, Packaging Corp. has an 89 EPS Rating, putting it in the top 11% of all companies for recent quarters and years profit growth. Additionally, it boasts an outstanding 95 IBD Composite Rating, of a best-possible 99.
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The IBD Composite Rating helps investors easily measure the quality of a stock's fundamental and technical metrics. The best growth stocks have a Composite Rating of 90 or better.
And Packaging Corp. of America has a B Accumulation/Distribution Rating, on an A+-to-E scale. The B rating means that Insurance company funds, ETFs and other institutional investors are fairly heavy buyers of its stock.
Earnings for the Chicago area company grew 49% last quarter, to $3.23 per share. The prior three periods its EPS rose 71%, 108% and 54%. Revenue last quarter grew 19% to $2.24 billion, up from 18% growth the previous quarter.
Using IoT To Make Better Packages
On its website, Packaging Corp. notes that emerging technologies, such as the Internet of Things, are leading to better, greener packaging. It said that in 2022, "the Internet of Things (IoT) movement is expected to shift into high gear with massive amounts of data being generated to make smarter and faster decisions."
Packaging Corp. is not currently near a potential buy zone. See if the stock goes on to build a base that could kick off a new price move.
Packaging Corp. earns the No. 4 rank among its peers in the Paper & Paper Production industry group. Veritiv and Mercer International are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
