We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where International Paper Company (NYSE:IP) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A close-up view of a hand assembling boxes of industrial packaging on an assembly line.
International Paper Company (NYSE:IP)
International Paper Company (NYSE:IP) dropped its share prices for a second consecutive day, losing 7.25 percent to end Tuesday’s session at $51.30 apiece.
The drop was in line with its counterparts as investors disposed of shares in manufacturing firms to minimize risks from the impact of tariff threats.
The trade threats followed International Paper Company (NYSE:IP)’s leadership change announcement last week, where it welcomed Lance Loeffler as its new chief finance officer and senior vice president.
Throughout his more than 25-year career, Loeffler has worked in finance, strategy, and business leadership roles at UBS Investment Bank, Deutsche Bank Securities, and Halliburton, where he served as CFO for four years.
With higher taxes now posing a huge challenge to the manufacturing companies, Loeffler would take on the critical task of ensuring IP’s profitability amid a volatile economic environment.
Overall IP ranks 6th on our list of Tuesday’s worst performers. While we acknowledge the potential of IP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.