Shares of containerboard and packaging products manufacturer Packaging Corporation of America (PKG - Free Report) scaled a new 52-week high of $88.29 on Dec 5, before ending the day at $87.15. The shares touched a new high following the completion of its recent acquisition of Columbus Container.
This Lake Forest, IL-based company has a market cap of $8.14 billion. Meanwhile, average volume of shares traded in the last three months is approximately 857K. Packaging Corporation has delivered a year-to-date return of 38.1%. The company has delivered an average positive surprise of 4.98% in the last four quarters.
Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock has the fundamentals to scale higher. The stock is currently trading at a forward P/E of 18.0x and has a long-term earnings growth expectation of 11.48%.
Growth Drivers
The Columbus Container buyout is a strategic fit for Packaging Corporation and is expected to be immediately accretive to earnings. The acquisition is anticipated to increase containerboard production by over 30,000 tons.
In August, Packaging Corporation made a similar deal with the purchase of all of the assets of TimBar Corporation, a large independent corrugated products manufacturer, for $386 million in cash. These strategic acquisitions exhibit that the company is focused on increasing its vertical integration of containerboard to above 90%. The company expects both the strategic acquisitions to increase its containerboard integration and allow further optimization along with enhancement of its mill capacity.
PACKAGING CORP Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of containerboard and packaging products manufacturer Packaging Corporation of America (PKG - Free Report) scaled a new 52-week high of $88.29 on Dec 5, before ending the day at $87.15. The shares touched a new high following the completion of its recent acquisition of Columbus Container.
This Lake Forest, IL-based company has a market cap of $8.14 billion. Meanwhile, average volume of shares traded in the last three months is approximately 857K. Packaging Corporation has delivered a year-to-date return of 38.1%. The company has delivered an average positive surprise of 4.98% in the last four quarters.
Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock has the fundamentals to scale higher. The stock is currently trading at a forward P/E of 18.0x and has a long-term earnings growth expectation of 11.48%.
Growth Drivers
The Columbus Container buyout is a strategic fit for Packaging Corporation and is expected to be immediately accretive to earnings. The acquisition is anticipated to increase containerboard production by over 30,000 tons.
In August, Packaging Corporation made a similar deal with the purchase of all of the assets of TimBar Corporation, a large independent corrugated products manufacturer, for $386 million in cash. These strategic acquisitions exhibit that the company is focused on increasing its vertical integration of containerboard to above 90%. The company expects both the strategic acquisitions to increase its containerboard integration and allow further optimization along with enhancement of its mill capacity.
PACKAGING CORP Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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