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Strength Seen in Stora Enso Oyj (SEOAY): Can Its 11.3% Jump Turn into More Strength?

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Stora Enso Oyj (SEOAY - Free Report) shares soared 11.3% in the last trading session to close at $10.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% loss over the past four weeks.

Stora Enso shares climbed after the company launched a strategic review of its Swedish forest assets, including a potential partial demerger and separate public listing. The initiative aims to sharpen strategic focus, streamline operations and unlock greater value from both its core packaging and forest businesses.

If pursued, the split would create two standalone entities: Stora Enso, maintaining leadership in renewable packaging with strong market positions and efficient production, and a new listed forest company—the largest of its kind in Europe—with unique long-term asset value and new revenue potential.

Last month, Stora Enso agreed to sell 175,000 hectares of Swedish forestland for EUR 900 million. Stora Enso retains ownership of more than 1.2 million hectares in Sweden, with a fair value of approximately EUR 5.8 billion as of 31 March 2025.

This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -37.5%. Revenues are expected to be $2.74 billion, up 10.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Stora Enso Oyj, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SEOAY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Stora Enso Oyj is a member of the Zacks Paper and Related Products industry. One other stock in the same industry, International Paper (IP - Free Report) , finished the last trading session 0.4% higher at $46.12. IP has returned -8.2% over the past month.

International Paper's consensus EPS estimate for the upcoming report has changed -3.4% over the past month to $0.38. Compared to the company's year-ago EPS, this represents a change of -30.9%. International Paper currently boasts a Zacks Rank of #5 (Strong Sell).

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