) reached a new 52-week high of $108.97 on July 11, exceeding the
previous high of $108.
KAPSTONE PAPER (KS): Free Stock Analysis
ROCK-TENN CO (RKT): Free Stock Analysis
ORCHIDS PAPER (TIS): Free Stock Analysis
DOMTAR CORP (UFS): Free Stock Analysis Report
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The Norcross, Ga.-based paperboard and packaging company, which
has a market cap of roughly $7.6 billion, has delivered a robust
one-year return of about 94% and year-to-date return of about
54%, outperforming the S&P 500. The company's long-term
estimated earnings per share growth rate is 15.6%. Average volume
of shares traded over the last three months is roughly 743K.
What's Driving Rock-Tenn Up?
Shares of Rock-Tenn are ascending, following its second-quarter
fiscal 2013 (ended Mar 31, 2013) results reported on Apr 23. The
company reported earnings per share of $1.12, up 15% year over
year, driven by strong operating performance. It was well
ahead of the Zacks Consensus Estimate of $1.02.
Rock-Tenn raised its cash flow guidance to a new range of $10 to
$10.50 per share, indicating increased demand for folding carton
and paper for fiscal 2013. The company also hiked its
quarterly dividend by 33% from 22.5 cents per share to 30 cents
Rock-Tenn provided the initial cash flow guidance for fiscal 2014
in a band of $10.50 to $11.50 per share, based on expected
recovery in containerboard and related box prices.
In addition, packaging industry is expected to see continued
growth, fuelled by demand for more expensive films to extend the
life of food products. Moreover, Rock-Tenn's investment in box
plants, installation of new standard corrugated box operating
system and increase in domestic and export pricing will help to
improve its profitability.
Rock-Tenn currently retains a short-term Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks with favorable Zacks Rank in the same industry are
KapStone Paper and Packaging Corporation
Orchids Paper Products Company
). While Domtar Corporation and KapStone Paper carry a Zacks Rank
#1 (Strong Buy), Orchids Paper holds a Zacks Rank #2 (Buy).