10 Best Paper Stocks to Buy According to Hedge Funds

1. International Paper Company (NYSE:IP)

Number of Hedge Fund Holders: 54

​​International Paper Company (NYSE:IP) is a leading global producer of fiber-based packaging and pulp products, operating manufacturing facilities across North America, Europe, Latin America, and Africa. IP’s primary business segments include industrial packaging (producing containerboard and corrugated boxes) and pulp, which supplies fluff, paper-grade, and specialty pulps. The company’s client base spans across industries like e-commerce, retail, and consumer goods.

Through the recent acquisition of DS Smith in 2025, International Paper Company (NYSE:IP) is positioned to become a global leader in sustainable packaging solutions focused on North America and EMEA markets. The company is implementing significant cost reduction initiatives, targeting $1.2 billion in net cost improvements, with approximately $120 million in annual corporate cost reductions and $110 million from facility closures already announced. IP’s commercial strategy reset is progressing as planned, with volume trends stabilizing and expected to show improvement in the latter half of 2025.

International Paper Company (NYSE:IP) is also making strategic investments to enhance its competitive position, including a new greenfield box plant in Iowa designed to deliver 20% lower costs and improved product quality. Management is focused on improving mill reliability and operational performance, addressing approximately $350 million in performance-related costs from 2024. The implementation of an 80/20 strategy has shown promising results in pilot locations, with 20% productivity gains, and will be expanded to 22 more box plants in 2025. These initiatives are part of a broader transformation aimed at creating a performance-driven, customer-centric culture to achieve $4 billion in EBITDA in the medium term.

Overall, International Paper Company (NYSE:IP) ranks first on our list of the 10 best paper stocks to buy according to hedge funds. While we acknowledge the potential of IP to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT:  20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

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