) touched a new 52-week high of $89.07 during its trading session
on Dec 5. This is an increase from the previous high of $89.06
witnessed on Oct 28.
Domtar closed the trading day on Dec 5 at $88.99, reflecting a
year-to-date return of 4.8%. The trading volume for the session
was 447.9K shares. This paper products company, with a Zacks Rank
#2 (Buy) has potential for further accretion. This is reflected
by both its earnings growth rate (3.0% over the next five years)
and earnings estimate revision for 2014.
Domtar has been eyeing expansion for quite some time now. The
company has been launching products and also pursuing inorganic
growth. Moreover Domtar is hiving-off assets which are
incompatible with its core competencies.
Recently, Domtar's wholly-owned subsidiary, Domtar Inc.
entered into a definitive agreement with Windmill Development
Group Ltd., for the sale of the erstwhile Domtar paper mill site
in Ottawa, Ontario and Gatineau, Quebec. Also, last month, Domtar
announced the acquisition of privately-held Laboratorios Indas,
based in Spain, to expand its personal care business in
The company expects to generate more business on the back of
increasing global demand of pulp, mainly in China. An improvement
in the paper prices are expected to boost revenues in the
In the past 60 days, the Zacks Consensus Estimate for 2013 has
increased 3.7% to $4.21 per share, and for 2014 it has gone up
31.8% to $8.46.
Other Stocks to Consider
Domtar currently has a market capitalization of $2.9 billion.
Other stocks to watch out for in the industry include
Clearwater Paper Corp.
KapStone Paper and Packaging Corp.
Orchids Paper Products Co.
). While Clearwater Paper has a Zacks Rank #1 (Strong Buy),
KapStone Paper and Packaging and Orchids Paper Products hold a
Zacks Rank #2.
CLEARWATER PAPR (CLW): Free Stock Analysis
KAPSTONE PAPER (KS): Free Stock Analysis
ORCHIDS PAPER (TIS): Free Stock Analysis
DOMTAR CORP (UFS): Free Stock Analysis Report
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