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Lake Forest, Illinois-based Packaging Corporation of America (PKG) is a leading U.S. packaging company that manufactures corrugated packaging, containerboard, and related products. It helps businesses safely package and transport goods by providing customized packaging solutions, supported by manufacturing, design, and customer service. The company has a market capitalization of approximately $22.2 billion.
Shares of this leading packaging company have slightly underperformed the broader market over the past year. PKG has gained 16.2% over this period, while the broader S&P 500 Index ($SPX) has rallied 18.7%. However, PKG has climbed 19.6% so far this year, outperforming the S&P 500’s 12.2% year-to-date gain.
Narrowing the comparison, PKG has considerably outperformed the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which has climbed 1.4% over the past year and declined 1.2% year-to-date.
On July 22, Packaging Corporation of America reported its Q2 FY2026 earnings, with shares dipping marginally before rebounding 2.5% in the following trading session as the company reported strong results, driven by record corrugated shipments and contributions from the Greif acquisition. Net sales grew 14.7% year over year to $2.49 billion, while total corrugated products shipments increased 24.3% per day. However, EPS excluding special items fell marginally year over year to $2.35.
For the current fiscal year ending in December 2026, analysts project PKG’s diluted EPS to increase 6.5% to $10.48. The company has surpassed consensus EPS estimates in two of the past four quarters, while missing expectations in the other two.
Among the 12 analysts covering PKG stock, the consensus rating is “Moderate Buy,” based on seven “Strong Buys” and five “Holds”.
PKG’s configuration is more bearish than it was two months ago, when the stock had eight “Strong Buy” recommendations.
On August 13, UBS analyst Anojja Shah maintained her “Buy” rating on Packaging Corporation of America while raising her price target to $292 from $271. Shah’s higher target reflects increased confidence in the company’s ability to navigate market conditions and sustain its competitive position.
The mean price target of $265.75 implies 7.8% upside from PKG’s current share price, while the Street-high target of $312 suggests 26.6% upside.
