Packaging Corporation Of America saw an improvement in its IBD SmartSelect Composite Rating Wednesday, from 94 to 96.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Packaging Corporation Of America broke out earlier, but is now around -5% below the prior 156.64 entry from a consolidation. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new base to form.
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The stock has an 89 EPS Rating, which means its recent quarterly and longer-term annual earnings growth is outpacing 89% of all stocks.
Its Accumulation/Distribution Rating of D shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
Earnings Update
In Q1, the company reported 54% EPS growth. Sales growth came in at 18%, down from 19% in the prior quarter.
Packaging Corporation Of America earns the No. 4 rank among its peers in the Paper & Paper Production industry group. Graphic Packaging is the No. 1-ranked stock within the group.
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