Mar. 25, 2025 at 12:03 PM ET6 min read

Is International Paper’s Stock Set for Growth?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

International Paper Company’s stocks surged on positive reactions to optimistic quarterly earnings and strategic expansion plans, including increased focus on sustainable packaging solutions and a new partnership in the bioenergy sector. On Tuesday, International Paper Company’s stocks have been trading up by 5.49 percent.

Summary of Developments

  • Citi analyst Anthony Pettinari resumes coverage of International Paper with a positive outlook, predicting a substantial earnings increase owing to cost-cutting strategies and synergy with DS Smith.
  • International Paper is on track to surpass its $2B medium-term cost savings goal, potentially leading to a $5B EBITDA by 2027, according to analysts.
  • With new CEO Andy Silvernail at the helm, International Paper is poised for heightened profitability, aided by its recent DS Smith acquisition expanding its European market footprint.
  • Recent price adjustments in the European recycled containerboard market are favorable for the company post-acquisition of DS Smith.
  • The recent appointment of Lance Loeffler as Senior VP and CFO, aligns with the leadership’s focus on strategic growth and operational efficiencies.

Candlestick Chart

Live Update At 12:03:04 EST: On Tuesday, March 25, 2025 International Paper Company stock [NYSE: IP] is trending up by 5.49%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of International Paper’s Financials

International Paper has made a series of strategic moves recently that signal potential growth and profitability. Over recent weeks, IP stock has shown a noticeable increase. Traders have taken notice of the positive trend in the stock’s behavior. As Tim Bohen, lead trainer with StocksToTrade says, “A good trade setup checks all the boxes—volume, trend, catalyst. Don’t trade if you’re missing pieces of the puzzle.” From the data provided, on Mar 25, 2025, the stock closed at $55.73 after a day of activity peaking at $56.64, demonstrating positive market momentum. This aligns well with the rigors of a solid trading strategy.

Financial evaluations reveal a company operating on solid margins. The gross margin stands impressively at 28.2%, while profitability ratios like EBIT and EBITDA margins draw attention. Despite certain fiscal challenges, such as a dip in net income, International Paper maintains its trajectory toward positive growth metrics, thanks in part to innovative solutions and acquisitions made in the sustainable packaging industry.

More Breaking News

Net sales have risen, reaching nearly $18.6B. Equally important, the company is managing assets prudently with a debt-to-equity ratio of 0.33, showcasing solid leverage management. Historical context highlights the resilience of International Paper’s stock amidst economic ebbs and flows, given its adaptability and strategic realignments in leadership. The recent acquisitions have fostered excitement about future market shares.

Key Acquisitions and Market Impacts

Recent analyses spotlight International Paper’s strategic acquisition of DS Smith, a move expected to cement its standing in the European market for sustainable packaging. Analysts project this merger to translate directly into robust earnings, provided the company harnesses the full synergy potential. Former prognostications suggested a trend toward sustainable solutions, and DS Smith’s acquisition aligns perfectly with this projection.

In line with market predictions, the Citi Analyst forecast coaxes investors to consider the potential profitability from internal efficiencies and external collaborations. This has likely spurred recent upticks in stock prices as investors recognize the aggregated value proposition.

Additionally, a sector-wide price increment in Europe’s recycled containerboard market is anticipated to elevate International Paper’s product pricing, promoting increased revenue flow from that region.

Enterprise Valuation and Forward Outlook

Under the stewardship of newly appointed CEO Andy Silvernail, the organization is charting courses toward profitability, consciously positioning itself to maximize financial turnaround. Expectations for infrastructure bolstering and cost management feature in the forecasts, with analysts doting on the fiscal prudence that marks the leadership’s roadmap.

Current valuations place International Paper in an attractive spot for value-driven investors looking to benefit from a forecasted rise in the stock’s worth. Its various cost-reduction initiatives articulate a commitment toward net positive earnings performance in the ensuing fiscal periods.

The recorded increase in asset turnover rates and the company’s enterprising venture into intelligent packaging suggests a forward-thinking enterprise capitalizing on market evolutions. As per analysts’ assessments, the stock is tipped for broad gains, ushering it into the echelon of stocks that may surpass projected valuation hurdles.

Strategic Planning and Leadership Changes

Leadership within International Paper has taken authoritative steps to fortify the company’s operating environment. Lance Loeffler’s ascension to CFO brings a new dimension to financial oversight, promoting operational strategies that aim to reduce excess expenditures while nurturing core competencies. The strategies align with the trading philosophy that recognizes how daily diligence can lead to competitive advantage. As Tim Bohen, lead trainer with StocksToTrade says, “A consistent trading routine beats sporadic action every time. Show up daily, and you’ll start to see the patterns others miss.”

The push for discerning fiscal prudency underscores International Paper’s commitment to maintaining a consistent value delivery to its stakeholders, indicating the nurturing of strategic alliances capable of augmenting command over their chosen markets.

In summary, International Paper’s stock reflects a gamut of calculated strategic moves and market foresight. Bolstered by historical resilience and substantive acquisitions, the company’s adaptive portfolio and leadership narrative are poised to drive stock value higher over time. The overarching sentiment remains optimistic as stakeholders look toward a promising fiscal horizon, potentially ripe for fresh opportunities in a sustainably-minded future.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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