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Is Packaging Corporation of America Underperforming the Nasdaq?
Valued at $16.8 billion by market cap, Packaging Corporation of America (PKG), based in Lake Forest, Illinois, operates as a leading U.S. producer of containerboard and corrugated packaging. Operating through its Packaging and Paper segments, PKG provides essential products like shipping containers and protective packaging to industries such as food, beverages, and industrial goods.
Companies worth $10 billion or more are generally described as "large-cap stocks." PKG fits right into that category, with its market cap exceeding the threshold, reflecting its substantial size and influence in the competitive industry of packaging & containers.
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PKG currently trades 25.8% below its all-time high of $250.82 recorded on Nov. 25, 2024. PKG's stock has declined 5.8% over the past three months, notably underperforming the Nasdaq Composite's ($NASX) 11.7% uptick during the same time frame.
In the long term, PKG stock has declined 17.3% on a YTD basis, underperforming the Nasdaq's 1.2% increase. Moreover, shares of PKG grew marginally over the past 52 weeks, also underperforming NASX's 9.4% returns over the same period.
To confirm its recent downturn, PKG has been trading below its 200-day moving average since early March and below its 50-day moving average since mid-June, with some fluctuation in recent months.
Despite reporting better-than-expected financials, PKG stock prices observed a marginal dip in the trading session after the release of its Q1 results on Apr. 22. The company's packaging sales experienced a solid boost during the quarter, leading to its net sales growing 8.2% year-over-year to $2.1 billion, surpassing the Street's expectations by a thin margin. Meanwhile, driven by a favorable pricing mix, its margins observed a significant expansion. This led to its adjusted EPS soaring 34.3% year-over-year to $2.31, exceeding the consensus estimates by 4.5%. Following the initial dip, PKG stock prices rose 2.2% in the subsequent trading session.
Its rival, Ball Corporation (BALL), has declined 10.3% over the past year, underperforming PKG.
Among the nine analysts covering the PKG stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $210.22 suggests a 12.9% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
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