Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis as on 12 Aug. 2023
Best Growth Stock Analysis
NYSE : IP
- * IP (INTERNATIONAL PAPER COMPANY).
- * International Paper company is in the industrial packaging, printing papers, distribution, and consumer packaging segment.
- * IP Co. offers fluff pulp for producing hygiene products; paper and tissue pulp for printing and writing, packaging and tissue products; and specialty pulp for diapers, tissue and other personal hygiene products.
- * IP company operates 25 pulp, paper and packaging mills, 180+ converting and packaging plants, recycling plants, and bag facilities in the US with Eco-friendly manufacturing techniques.
- * International Paper company has integrated operations, which means it manages the entire production process, from sourcing raw materials (such as wood fiber) to manufacturing finished products which are directly supplied to markets.
- * IP company provides its products and services to Manufacturing, Personal Care, Shipping & Distribution, Grocery & Retail Industries.
Revenue Breakdown Worldwide
Regions – Q3 2020 – Q2 2021 – Q3 2021 – Contribution in Q3 2021
EMEA – $0.694 – $0.835 – $0.683 – 11.95%
Pacific, Rim, Asia – $0.057 – $0.05 – $0.06 – 1.05%
US – $4.054 – $4.379 – $4.612 – 80.71%
Americas, other US – $0.318 – $0.352 – $0.359 – 6.28%
Total – $5.123 – $5.616 – $5.714 – 100.00%
(All figures in billions, except percentages)
What we think are pros of business:
- High Research & Development investment, and standardized manufacturing across the globe facilitated by latest machines.
- The strong brand image of International Paper & Legacy since 1898.
- International Paper has engaged in mergers and acquisitions to expand its product offerings, geographic reach, and market share.
- Acquiring complementary businesses can provide new growth opportunities in the new marketplaces.
- The increase in e-commerce industry has resulted in high demand for packaging solutions.
- Strong market position: well-known brand, large customer base from different regions or countries.
- Eco-friendly products and high-growth record in the past years.
What we think the risks are:
- Paper-making factories are associated with pollution and cause harm to nearby areas.
- Considerable resources in Russia which may be affected due to the global crisis and US opinions against Russia
- Bad press, it is blamed for deforestation in America.
- International Paper must ensure compliance with these regulations to avoid legal and reputational risks
Fundamentals:
- Market Cap: 12.29 Billion
- P/E: 11.96
- EPS: 2.96
- ROI = 7.21%
Technical for a long-term perspective:
– Cross the previous rectangular resistance zone with BIG green candle having high volumes.
– Breakout on Weekly charts with good closing above the Trendline.
– It may go up to the 50 levels very soon if it sustains above the level of 33
– It may starts its uptrend momentum from the very next week.
– RSI is also creating a bullish signal it starts uptrend after a short consolidation.
Entry = Above 36.50
Stop Loss = 33
Target = 41 / 49 / 58
Our Final Thought:
This stock has seen very good correction from upper levels and it start a fresh uptrend after the breakout from this levels. This company will get directly benefitted if worlds start using more Eco-friendly products. The International Paper company’s history and its capacity to innovate suggest that it is well-equipped to navigate these challenges and continue its success. As the E-commerce and Shipping industry is growing day by day this paper company has the growth potential with these rising trends of E-commerce world wide.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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