International Paper Company (IP) operates as a major global supplier of fiber-based solutions, transforming renewable resources into products that are essential for the worldwide economy. The company specializes in designing and manufacturing packaging that safeguards and displays goods, supports global commerce, and ensures consumer safety. Beyond packaging, IP also produces vital renewable materials like pulp, which is used in the creation of diapers, tissue products, and various personal care items. Simultaneously, the company is actively pursuing circular solutions that encourage recycling, minimize waste, and contribute to a more sustainable future. Currently, International Paper possesses a market capitalization of approximately $20.4 billion, firmly placing it within the “large-cap” category, significantly above the $10 billion threshold.
A pivotal development for International Paper occurred in 2025 with the strategic acquisition of DS Smith. This transformative move created an industry powerhouse, strategically focused on the rapidly growing North American and EMEA (Europe, Middle East, and Africa) markets. This expansion strengthens IP’s global footprint and positions the company for continued growth in key regions.
However, despite its substantial role in the economy, International Paper’s shares have experienced a notable decline in performance recently. Over the past three months, the stock has fallen by 16.2%, a considerably larger decrease than the 4.3% dip observed in the iShares Global Timber & Forestry ETF (WOOD), which serves as a relevant benchmark due to IP’s core involvement in the timber value chain – sourcing wood fiber and converting it into essential packaging, paper, and pulp products used across the globe. Looking at the longer-term perspective, the company’s shares have sustained a downward trend, declining by 30.5% over the past year and an additional 28% during 2025. This demonstrates sustained pressure on the stock, contrasting sharply with the relative resilience of the iShares Global Timber & Forestry ETF, which has seen comparatively modest declines of 9.6% over the past year and 6.1% in 2025.
Technical indicators further reflect the company’s weak trend. Since the end of July, International Paper has consistently traded below its 200-day moving average, and has remained below its 50-day moving average for most of the period, punctuated only by brief, short-lived rebounds. This bearish technical picture has contributed to investor caution.
Several factors have contributed to the pressure on International Paper’s stock. The company is currently undergoing restructuring efforts, and broader industry headwinds, including uneven demand, increased input costs, and a dynamic market landscape, have weighed on the stock. These challenges have resulted in recent financial losses and plant closures. Despite this, the company maintains long-term growth potential tied to the expanding shift toward sustainable packaging solutions. In early November 2025, International Paper announced the closure of two U.S. packaging plants in Compton, California, and Louisville, Kentucky, impacting approximately 218 employees. Production volumes will be shifted to nearby facilities.
The performance of International Paper has been more pronounced than that of Packaging Corporation of America (PKG), which has experienced a decline of approximately 14.1% over the past year and 9.5% in 2025. Despite the stock’s underperformance, analysts maintain a “Moderate Buy” rating, with an average price target of $49.71, suggesting a potential 28.8% increase from current levels. At the time of publication, Anushka Mukherjee did not hold (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 Barchart.com
