Based in Lake Forest, Illinois, Packaging Corporation of America (PKG) is a top manufacturer of containerboard and corrugated packaging products. Worth a market cap of $20.5 billion, Packaging Corporation plays a vital role in the packaging industry, offering a wide range of high-quality products, including shipping containers, packaging supplies, and custom design solutions for businesses across various sectors.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Packaging Corporation of America fits right into that category.
Shares of PKG are trading 8.8% below their 52-week high of $250.82, which they hit on Nov. 25. The stock has gained 6.4% over the past three months, underperforming the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 17% return over the same time frame.
In the longer term, PKG has climbed 20.6% over the past six months, and the shares have gained 39.8% over the past 52 weeks. In comparison, the XLY has gained 29.2% and 30.6% over the respective time frames.
PKG has been trading above its 200-day moving average since the previous year but has been trading below its 50-day moving average since couple of trading sessions.
PKG stock rose 5.5% after its Q3 earnings release on Oct. 22. The company surpassed its top-line and bottom-line estimates, thanks to strong growth in its packaging segment, driven by higher volumes. Lower freight and logistics costs also played a key role in boosting performance.
Highlighting contrast in performance, PKG has underperformed its rival, International Paper Company (IP), which has gained 50.4% over the past year.
Analysts remain moderately optimistic about PKG’s prospects. The stock has a consensus rating of “Moderate Buy” from eight analysts in coverage. The mean price target of $241.86 indicates that the stock trades at a premium of 5.7% from prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Elon Musk Thinks This 1 Vital Component is the Key to Building Billion Dollar Startups, 'You've Got To Gather Great People'
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