10 Best Paper Stocks to Buy According to Hedge Funds

3. Magnera Corporation (NYSE:MAGN)

Number of Hedge Fund Holders: 47

​​Magnera Corporation (NYSE:MAGN) is a US-based specialty materials company formed in November 2024 through the merger of Glatfelter Corporation and Berry Global’s division named Treasure Holdco. The merger combined Glatfelter’s sustainable solutions and product portfolio with Treasure’s proprietary technologies and global scale, positioning the company as a global leader in growing markets serving major brand owners. MAGN produces engineered materials used in consumer and industrial applications, including components for absorbent hygiene products, protective apparel, wipes, filtration media, and specialty construction materials.

Magnera Corporation (NYSE:MAGN)’s financial performance shows some initial challenges, with a quarterly net loss of $60 million compared to an $8 million loss in the prior year period. Net sales increased significantly to $702 million from $519 million, primarily due to the aforementioned transaction, which contributed $186 million in revenue. Looking forward, management expects to realize annual synergies of $55 million net of incremental standalone costs and projects post-merger free cash flow of $75-95 million for fiscal year 2025, including $85 million of capital spending. Despite global macroeconomic challenges, including rising inflation, currency devaluation, and general market softness, management believes the underlying long-term demand fundamentals across all divisions will remain strong as they focus on providing advantaged products in targeted markets. We believe MAGN’s position will only get better once the divisions become fully integrated and synergies start to realize, and hence include the stock in 3^rd place on our list of best paper stocks to consider.