International Paper (IP) Soars 11.0%: Is Further Upside Left in the Stock?
International Paper (IP) shares soared 11% in the last trading session to close at $38.77. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.4% loss over the past four weeks.
International Paper witnessed a significant increase in its share value following the announcement of Andrew Silvernail being appointed as the next Chief Executive Officer. Silvernail, who boasts two decades of leadership experience in both manufacturing and technology sectors, will assume the role of current CEO Mark Sutton on May 1, 2024. In September 2023, International Paper disclosed Sutton's intention to retire after forty years of service once a suitable successor was identified.
This global paper and packaging company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -58.5%. Revenues are expected to be $4.45 billion, down 11.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For International Paper, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on IP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
International Paper is part of the Zacks Paper and Related Products industry. WestRock (WRK), another stock in the same industry, closed the last trading session 1.4% higher at $49.05. WRK has returned 10.7% in the past month.
WestRock's consensus EPS estimate for the upcoming report has changed +4.4% over the past month to $0.24. Compared to the company's year-ago EPS, this represents a change of -68.8%. WestRock currently boasts a Zacks Rank of #3 (Hold).
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International Paper Company (IP) : Free Stock Analysis Report
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