Why International Paper Company (IP) Went Up On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Top Performers. In this article, we are going to take a look at where International Paper Company (NYSE:IP) stands against other Tuesday’s top performers.

A lackluster trading persisted on the stock market on Tuesday, with all major indices finishing in the green territory, but eked out only slight gains.

The tech-heavy Nasdaq rallied the most, up 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

Despite the muted trading, investors poured funds into several companies, pushing their prices to achieve modest gains. In this article, we listed the 10 top performers today and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in 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 jumped by 6.49 percent on Tuesday to finish at $56.26 apiece following a robust earnings outlook over the next two years.

At its annual investor day, IP said it targets revenues for the year to settle at $27 billion, higher than the $24.6 billion as expected by analysts, while earnings before interest, tax, depreciation, and amortization (EBITDA) is expected to settle between $3.5 billion and $4 billion. Revenues in 2027 are expected to end between $26 billion and $28 billion.

Additionally, IP said it would allocate some $1.9 billion in capital expenditures over the next two years to optimize its production footprint.

Meanwhile, IP plans to make its plants more efficient and allocate more resources to higher-value customers and markets.

Overall, IP ranks 4th on our list of Tuesday’s top 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 as promising as IP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.