10 Best Paper Stocks to Buy According to Hedge Funds

5. Smurfit Westrock Plc (NYSE:SW)

Number of Hedge Fund Holders: 35

​​Smurfit Westrock plc (NYSE:SW) is a global leader in sustainable paper-based packaging solutions, formed in mid-2024 through the merger of Ireland’s Smurfit Kappa and US-based WestRock. The transaction boosted the company’s scale as it now operates in 40 countries, managing over 500 packaging converting operations and a large network of 62 paper mills. Its product portfolio includes corrugated packaging, consumer packaging, proprietary box systems, and point-of-sale displays. SW also became an integrated producer and sources raw materials through its own recycling and forestry operations, aligning with its commitment to the circular economy.

Smurfit Westrock plc (NYSE:SW) delivered a strong Q4 performance and achieved its previous full-year 2024 guidance of $4.706 billion adjusted EBITDA. The company has identified significant value-creating opportunities beyond the initial $400 million synergy target, with additional opportunities of at least $400 million through cost takeout and commercial approach improvements. The company has already taken decisive action by streamlining operations, with over 1,000 people leaving the company as part of their decentralization strategy and accountability model.

Looking ahead, Smurfit Westrock plc (NYSE:SW) has started 2025 well and anticipates delivering an adjusted EBITDA growth for the first quarter. The management team is focused on implementing a value-over-volume strategy and is committed to maintaining a strong investment-grade credit rating, targeting a long-term leverage ratio below 2x through the cycle. SW’s commitment to innovation, cost discipline, and quality has reinforced its position as not only the largest integrated player in their regions but also the most reliable packaging and supply chain partner for customers, which persuaded us to include it in the fifth place on our list of best paper stocks to consider.