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The Zacks Analyst Blog Highlights: International Paper Co, Amcor, Packaging Corporation of America and Sealed Air Corp

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For Immediate Release

Chicago, IL – March 9, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: International Paper Company (IP - Free Report) , Amcor plc (AMCR - Free Report) , Packaging Corporation of America (PKG - Free Report) and Sealed Air Corporation (SEE - Free Report) .

Here are highlights from Monday’s Analyst Blog:

4 Stocks to Gain from Rise in Demand for E-Commerce Packaging

E-commerce has become the go-to option for consumers owing to the convenience it provides. Consumers can use their computers or smart devices to order what they require from a vast array of products, from the comfort of their homes. Moreover, the COVID-19 pandemic has only accelerated the importance of e-commerce as quite a few brick-and-mortar stores had to shut down in order to minimize the risk of spreading the virus.

Notably, the increasing sales of e-commerce also in turn is having a positive impact on packaging since the products need to be delivered in the best of conditions to the consumer. In fact, per a report by Mordor Intelligence, the global e-commerce packaging market is expected to witness a CAGR of 14.59% from 2021 to 2026 and reach $61.55 billion by 2026 from $27.04 billion in 2020.

The report mentioned that with each increase in the varieties of products present online, it is creating its own demand for a packaging solution. Moreover, factors like the rising Internet penetration and the increasing access to the Internet for a majority of the population across the globe in developing economies are also creating potential market opportunities for e-commerce players and packaging providers to acquire market shares by venturing into untapped markets.

Moreover, the report mentioned that consumers are now trusting e-commerce players to provide quality products and offer after sales support which is encouraging them to order multiple products online. Hence, packaging providers are also offering “robust packaging solutions to sustain damages during handling and logistics.”

Meanwhile, the report also stated that e-commerce companies are focusing now on providing sustainable packaging solutions to their customers which are recyclable and biodegradable, in order to minimize the use of plastics.

Such positive developments in the e-commerce space are sure to augur well for the packaging solutions providers as consumers will always look forward to their products being delivered with the utmost care and proper handling. Reflective of the expected rise in demand for e-commerce packaging, another report by Mordor Intelligence also predicted that by 2021, e-commerce is set to become the largest retail channel in the world and accounts for 14% of the total retail sales.

4 Stocks to Keep an Eye On

The rising popularity of e-commerce is set to drive the demand for e-commerce packaging as consumers will always look forward to their products being delivered in the best of conditions. Hence, this makes it a good time to keep an eye on names that can benefit from this expected upswing in the e-commerce packaging market. Notably, we have selected four such stocks that carry a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

International Paper Co. operates as a paper and packaging company primarily in the United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas. Notably, the company provides corrugated packaging to the e-commerce market. The Zacks Consensus Estimate for its current-year earnings increased 9.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 37.1%.

Amcor plc develops, manufactures, and sells various packaging products for food, beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries worldwide. Notably, the company has its e-commerce-ready packaging solutions and provides them in both the flexible and rigid packaging categories. The Zacks Consensus Estimate for its current-year earnings increased 1.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 12.5%.

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. Notably, the company offers its e-commerce packaging solutions and its e-commerce website allows users to access a catalog of packaging designs. The Zacks Consensus Estimate for its current-year earnings increased 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 16.1%.

Sealed Air Corp provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company’s protective segment provides foam, corrugated, molded pulp, and wood packaging solutions to protect goods in shipping for e-commerce, consumer goods, pharmaceutical and medical devices, and so on.

The Zacks Consensus Estimate for its current-year earnings increased 4% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 6%.

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