We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
International Paper at a 52-Week Low: What's Taking It Down?
Read MoreHide Full Article
International Paper Company (IP - Free Report) spiraled down to a new 52-week low of $48.07 during the trading session on Oct 4. However, the stock recovered marginally to close at $48.78.
Over the past 52 weeks, shares of International Paper have traded between a low of $48.07 to a high of $66.94. The average volume of shares traded over the last three months is around 2.4 million.
Why the Downturn?
International Paper heavily depends on raw materials such as wood fiber, purchased in the form of pulpwood, wood chips and old corrugated containers (OCC), and certain chemicals, including caustic soda and starch, and energy sources, principally natural gas, coal and fuel oil. Further, distribution costs are trending upward of late due to a very tight truck and rail availability as well as higher diesel fuel costs. Thus, elevated costs have hurt the company’s performance and remain a major concern for the near term.
International Paper Company Price, Consensus and EPS Surprise
The company operates in various international locations and has a significant number of manufacturing facilities in Russia, Brazil, Poland, India and Turkey. As such, the company is grappling with economic and political instabilities in a few regions across the world. Adverse foreign currency translation is also likely to dent its bottom line. Moreover, trade protection measures, like governmental subsidies and tax benefits, lend local producers a competitive advantage over International Paper.
International Paper also has a huge burden of pension obligations. Fluctuations in actual equity market returns, fluctuations in general interest rates and changes in the number of retirees are likely to increase pension costs and reduce International Paper’s cash flow, thereby limiting the positives from its acquisitions.
Price Performance
International Paper has not been performing well of late. Over the past year, the stock has declined around 16% compared with the industry’s growth of 1%.
When compared to the market at large, the stock’s performance is quite disappointing as well with the S&P 500 index gaining 15%.
Zacks Rank and Stocks to Consider
International Paper currently has a Zacks Rank #4 (Sell).
Quaker Chemical has a long-term earnings growth rate of 11%. The stock has rallied 33% in a year’s time.
Air Products has a long-term earnings growth rate of 13.3%. The company’s shares have gained 11% during the past year.
Cabot has a long-term earnings growth rate of 11%. Its shares have gained 12% over the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
International Paper at a 52-Week Low: What's Taking It Down?
International Paper Company (IP - Free Report) spiraled down to a new 52-week low of $48.07 during the trading session on Oct 4. However, the stock recovered marginally to close at $48.78.
Over the past 52 weeks, shares of International Paper have traded between a low of $48.07 to a high of $66.94. The average volume of shares traded over the last three months is around 2.4 million.
Why the Downturn?
International Paper heavily depends on raw materials such as wood fiber, purchased in the form of pulpwood, wood chips and old corrugated containers (OCC), and certain chemicals, including caustic soda and starch, and energy sources, principally natural gas, coal and fuel oil. Further, distribution costs are trending upward of late due to a very tight truck and rail availability as well as higher diesel fuel costs. Thus, elevated costs have hurt the company’s performance and remain a major concern for the near term.
International Paper Company Price, Consensus and EPS Surprise
International Paper Company Price, Consensus and EPS Surprise | International Paper Company Quote
The company operates in various international locations and has a significant number of manufacturing facilities in Russia, Brazil, Poland, India and Turkey. As such, the company is grappling with economic and political instabilities in a few regions across the world. Adverse foreign currency translation is also likely to dent its bottom line. Moreover, trade protection measures, like governmental subsidies and tax benefits, lend local producers a competitive advantage over International Paper.
International Paper also has a huge burden of pension obligations. Fluctuations in actual equity market returns, fluctuations in general interest rates and changes in the number of retirees are likely to increase pension costs and reduce International Paper’s cash flow, thereby limiting the positives from its acquisitions.
Price Performance
International Paper has not been performing well of late. Over the past year, the stock has declined around 16% compared with the industry’s growth of 1%.
When compared to the market at large, the stock’s performance is quite disappointing as well with the S&P 500 index gaining 15%.
Zacks Rank and Stocks to Consider
International Paper currently has a Zacks Rank #4 (Sell).
A few better-ranked stocks in the same sector include Quaker Chemical Corporation (KWR - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Cabot Corporation (CBT - Free Report) . While Quaker Chemical sports a Zacks Rank #1 (Strong Buy), Air Products and Cabot carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Quaker Chemical has a long-term earnings growth rate of 11%. The stock has rallied 33% in a year’s time.
Air Products has a long-term earnings growth rate of 13.3%. The company’s shares have gained 11% during the past year.
Cabot has a long-term earnings growth rate of 11%. Its shares have gained 12% over the past year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>