7 Best Paper Stocks To Buy Right Now

1. International Paper Company (NYSE:IP) 

Number of Hedge Fund Holders: 44 

International Paper Company (NYSE:IP) is a leading global producer of renewable fiber-based packaging and pulp products. The company transforms renewable resources into essential items that people rely on daily, including corrugated packaging for shipping and retail, pulp for diapers and personal care products, and paper for various applications.

International Paper Company (NYSE:IP) reported Q2 2024 revenue of $4.73 billion, slightly below Wall Street estimates but up 1.11% year-over-year, driven by improved pricing, higher exports, and relatively favorable market conditions in its Industrial Packaging segment. While the Global Cellulose Fiber segment remained stable despite fluctuating demand, investor interest has declined following the failure of a potential acquisition by Suzano, as investors had hoped for a significant premium.

However, International Paper is in the process of acquiring UK-based DS Smith, expected to enhance operational capabilities and market presence. The company has a solid foundation and a promising future, focusing on customer-driven strategies, cost optimization, and team alignment for long-term success.

Diamond Hill Select Strategy stated the following regarding International Paper Company (NYSE:IP) in its Q2 2024 investor letter:

“Other top individual contributors in the quarter included Coherent and new holding International Paper Company (NYSE:IP). International Paper is one of the US’s largest manufacturers of containerboards, which is used to make corrugated boxes and other packaging materials. We expect that as the demand environment improves and the company focuses on its commercial execution, it will be able to improve profitability and bring operating margins back to normalized levels. Given what we view as an attractive valuation for a high-quality company, we capitalized on the opportunity to initiate a position in Q2. Shares subsequently rallied after reports that Brazilian company Suzano is interested in acquiring the company.”

Overall, IP ranks first among the 7 best paper stocks to buy now. While we acknowledge the potential of paper companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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