Bull Of The Day: International Paper (IP)

International Paper (IP) is a Zacks Rank #1 (Strong Buy) that has a C for Value and a D for Growth.  The company is a global producer of renewable fiber-based products.  Some of those products include packaging goods and other paper related items.  Let’s explore more about why this stock is the Bull of the Day.DescriptionInternational Paper Co. engages in the business of producing renewable fiber-based packaging and pulp products with manufacturing operations. It operates through the following segments: Industrial Packaging, Global Cellulose Fibers, and Corporate and Intersegment. The Industrial Packaging segment is involved in creating fiber-based packaging that protects and promotes goods, enables worldwide commerce, and helps keep consumers safe. The Global Cellulose Fibers segment offers a wide range of applications like diapers, towel and tissue products, feminine care, incontinence, and other personal care products that promote health and wellness. The company was founded by Hugh J. Chisholm in 1898 and is headquartered in Memphis, TN.Earnings HistoryWhen I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.International Paper (IP) has a good earnings history with the company topping the Zacks Consensus Estimate in 3 of the last 4 quarters. The most recent earnings print saw the company posted a gain of 44 cents when the consensus was at 24 cents.  That 20 cent beat translates into a positive earnings surprise of 83%Over the last four quarters the average earnings surprise works out to be 28%.Earnings Estimates RevisionsEarnings estimate revisions is what the Zacks Rank is all about. Estimates are moving higher for International Paper (IP).Following the recent beat, the estimates for this quarter has held still at $0.06.Next quarter has moved from $0.42 up to $0.44The full year 2024 estimate is down from $1.42 to $1.18.Next year increased from $2.92 to $3.02All of the estimate moves have come in the last 60 days.GrowthI see revenue in 2024 will come in around $18.7B which will end up being a contraction of just under 1%.2025 is calling for sales of $19.6B which represents 4.7% growth.ValuationThe forward PE stands at 18.3x which is a little high given the lack of growth in 2024.  The price to book multiple of 2.2x is low enough to keep the value oriented investors interested in this stock.  Price to sales comes in just a hair over 1x, which is to be expected as this is more of a commodity based product.Margins are rather thin, as one would expect for a product like this.  There basically isn’t a moat for IP, and we have seen operating margins fall from 3.3% to 2.9% over the last two quarters.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Paper Company (IP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks