7 Best Paper Stocks To Buy Right Now

4. Packaging Corporation of America (NYSE:PKG)

Number of Hedge Fund Holders: 28 

Packaging Corporation of America (NYSE:PKG) is a leading producer of containerboard and corrugated packaging products in the United States. The company manufactures a wide range of custom corrugated packaging solutions, including boxes, containers, and displays, as well as container boards used in the production of these products.

Packaging Corporation of America (NYSE:PKG) has established industry benchmarks, being the first U.S. containerboard company to earn ISO certification for its linerboard and semi-chemical medium mills. Its Counce, Tennessee paper mill received the “America’s Best Plants” award from IndustryWeek magazine, marking it as the first paper mill to achieve this recognition. Additionally, PCA’s strategic acquisitions and expansions, including a $440 million project in 2021 to convert a paper machine at its Alabama mill for linerboard production, have strengthened its market position and expanded its capabilities.

PKG’s net sales rose to $2.1 billion in Q2 2024, up 5% from $2 billion in Q2 2023, driven by improved demand in the Packaging segment, record containerboard production, and higher prices. Net income slightly decreased to $199 million from $209 million in the same quarter last year, but the company’s overall financial position remains robust.

Among the 28 hedge funds holding PKG in the Insider Monkey database, the largest stakeholder was Millenium Management with shares worth $187,595,918. The stock holds a Moderate Buy rating based on 6 Wall Street analysts. Analysts have provided 12-month price targets for Packaging over the last three months. The average target is $217.00, with a high of $235.00 and a low of $195.00, representing a -2.13% change from the last price of $221.73.