) hit a 52-week high of $73.31 during yesterday's trading
session. However, the stock closed a notch lower at $72.56, which
reflects a solid yearly return of 80.3%. The average trading
volume aggregated 1.2 million shares.
This Zacks Rank #1 (Strong Buy) stock is likely to continue
this momentum as it currently trades at a forward P/E of
16.27x and has a long-term earnings growth expectation of
Improved prices, strong corrugated products volume, and
productive and efficient mill operations are the primary driving
factors for Packaging Corporation.
On Feb 11, 2014, Packaging Corporation reported net income of
$227.0 million or $2.33 per share for the fourth quarter of 2013
compared with $61.0 million or 63 cents per share in the year-ago
quarter. The improvement in earnings was driven by
acquisition of Boise, Inc.
Pricing for domestic containerboard and boxes remained very
steady during the quarter. The corrugated products shipments were
up 4.4% year over year and were up 24.0% including Boise's
partial quarter shipments. White papers, volume was up about 1%
year over year driven by growth in office papers, which offset
declines in printing and converting, and pressure-sensitive
Packaging Corporation is concentrating on strengthening its
business through acquisition of complementary companies.
Additionally, Packaging Corporation is on a look-out for more
potential acquisitions with an aim to improve its long-term
Packaging Corporation is the fourth largest producer of
containerboard and corrugated packaging products in the United
States and the third largest producer of uncoated freesheet paper
in North America. The company's strong leadership position bodes
well in the long term.
Over the last 30 days, Packaging Corporation's earnings
estimates for fiscal 2014 climbed higher on expectations of a
solid earnings momentum. We also envision an uptrend for the
stock backed by its strong growth potential.
Other Stocks to Consider
Other stocks that look promising and are worth a look now
Clearwater Paper Corp.
Fibria Celulose SA
), each having a Zacks Rank #2 (Buy).
CLEARWATER PAPR (CLW): Free Stock Analysis
FIBRIA CELULOSE (FBR): Free Stock Analysis
PACKAGING CORP (PKG): Free Stock Analysis
DOMTAR CORP (UFS): Free Stock Analysis Report
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