Upward revisions in earnings estimates are always nice to see,
and in the
stock market today
, paper producers are favored.
Among higher-rated stocks in that space,Rock-Tenn (
) has seen EPS estimates revised upward for each of the next two
The Street expects Rock to boost earnings 43% in fiscal 2013
ending in September. In fiscal 2014, analysts expect 42%
If those views prove accurate, Rock-Tenn will more than double
the $4.49 a share the company earned in fiscal 2012.
No other stock in the group has such high expectations for
Rock-Tenn is a midcap manufacturer of corrugated and consumer
packaging. The company passes the Jack Welch test. The former
General Electric CEO used to say that a company should strive to
be No. 1 or No. 2 in a business segment, or get out of that
In North America, Rock-Tenn is the No. 1 producer of
merchandising displays and No. 1 in solid fiber partitions. The
company is No. 2 in folding cartons and No. 2 in coated recycled
The company's three- and five-year Earnings Stability Factors
are 8 and 16. The gauge runs from zero (calm) to 99 (wild).
Based in Norcross, Ga., the company has tripled its quarterly
dividend payout since August 2009. Four increases boosted the
payout from 10 cents a share to 30 cents a share.
The current annualized yield is 1.2% vs. 2.4% for the S&P
The stock's chart does not currently offer a valid entry.
However, the stock has been consolidating for almost four weeks.
Action has been tight, and volume in the decline has been
With a little time, Rock-Tenn could form a second-stage flat