10 Best Paper Stocks to Buy According to Hedge Funds

2. Packaging Corporation of America (NYSE:PKG)

Number of Hedge Fund Holders: 51

​​Packaging Corporation of America (NYSE:PKG) is a leading US manufacturer of containerboard and corrugated packaging products. The company operates seven containerboard mills and more than 85 corrugated converting plants across the country. The Packaging segment produces over 4.5 million tons of containerboard annually and ships around 60.5 billion square feet of corrugated products, while the company’s Paper segment manufactures uncoated freesheet papers, including both commodity and specialty grades.

Packaging Corporation of America (NYSE:PKG) reported strong Q4 2024 results with a net income of $221 million ($2.45 per share) and record fourth-quarter sales of $2.1 billion. The company achieved record-breaking performance in both its packaging and paper segments, with the packaging business delivering record fourth-quarter total shipments and all-time record shipments per day. Full-year 2024 earnings, excluding special items, were $814 million ($9.04 per share), up from $784 million ($8.70 per share) in 2023, with net sales increasing to $8.4 billion from $7.8 billion.

Packaging Corporation of America (NYSE:PKG) is executing significant capital projects, including new box plant constructions and major reconfigurations, with capital expenditures projected at $840-870 million for 2025. PKG completed numerous high-return efficiency improvement projects in its corrugated products plants that will enable better optimization of the packaging business for future profitable growth and mix enhancement opportunities. Looking ahead to Q1 2025, although seasonally slower, the company expects volume in corrugated products plants to set new first-quarter records for total shipments and shipments per day, with bookings and billings already up 8% in January. With optimistic guidance ahead and 51 hedge funds owning the stock, PKG is one of the best paper stocks to buy.