12 Best Land and Timber Stocks to Buy According to Analysts

8. Sylvamo Corporation (NYSE:SLVM)

Average Price Target Upside Potential According to Analysts: 17.37%

Number of Hedge Fund Holders: 18

Sylvamo Corporation (NYSE:SLVM) is a significant player in the paper industry, producing paper for education, communication, and entertainment. The company operates mills in Europe, Latin America, and North America, and manages over 294,000 acres of forest in Brazil. Sylvamo is dedicated to sourcing all its fiber from sustainably managed forests. SLVM is one of the best land and timber stocks to buy according to analysts.

In the third quarter of 2024, Sylvamo Corporation (NYSE:SLVM) reported a net income of $95 million, or $2.27 per diluted share, an increase from $83 million in the second quarter of 2024. The company achieved an adjusted EBITDA of $193 million, reflecting a 20% margin, up from 18% in the second quarter. This strong performance was driven by higher shipment volumes in North America.

The company is focused on optimizing its operations. Sylvamo Corporation (NYSE:SLVM) is terminating a supply agreement with International Paper for uncoated freesheet, bristols and specialty papers, effective December 31, 2024. This move is part of a broader strategy to streamline operations and enhance efficiency.

Sylvamo Corporation (NYSE:SLVM) has also made significant strides in returning value to shareholders. In 2024, the corporation has repurchased $30 million of its shares and plans to return at least 40% of its free cash flow to shareholders through dividends and buybacks. The board declared a quarterly dividend of $0.45 per share in the fourth quarter, which was paid in October. Year-to-date, Sylvamo Corporation (NYSE:SLVM) has distributed $62 million through four quarterly dividends. With its commitment to sustainability, strong financial results, and strategic initiatives aimed at enhancing operational efficiency and shareholder value, Sylvamo Corporation (NYSE:SLVM) is well-positioned for future growth.