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Packaging Corporation of America (PKG), headquartered in Lake Forest, Illinois, manufactures containerboard and corrugated packaging products. With a market cap of $19.25 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. The company operates with approximately 15,000 employees and has multiple manufacturing facilities across the U.S., producing high-quality packaging solutions to meet the needs of various industries.
Shares of PKG are trading 1.5% below their 52-week high of $217.69, which they hit on Sep. 16. The stock has gained 14.4% over the past three months, outperforming the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.5% return over the same time frame.
In the longer term, PKG is up 31.6% on a YTD basis, and the shares have gained 42.1% over the past 52 weeks. In comparison, the XLY has gained 12.7% in 2024 and 26.8% over the past year.
To confirm its bullish trend, PKG has been trading above its 200-day moving average since the previous year and 50-day moving average since early July.
Shares of PKG gained marginally following its Q2 earnings release on Jul. 23. The company reported second-quarter net income of $199 million, or $2.21 per share, on sales of $2.1 billion, up from $2.0 billion in 2023.
Highlighting contrast in performance, PKG has underperformed its rival, International Paper Company (IP), which gained 33% on a YTD basis.
Given PKG’s outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from seven analysts in coverage. The mean price target of $207.17 indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
