Stock of the Day

January 13, 2020

Packaging Corporation of America (PKG)

$235.58
+$3.00 (+1.3%)
Market Cap: $20.93B

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

Today's Trend

Packaging Corporation of America (NYSE: PKG) is receiving a modestly positive earnings-related news flow ahead of its scheduled quarterly report, which may be supporting the stock. The company’s recent share performance has been higher as investors weigh expectations for improving earnings.

  • Earnings beat potential: Zacks says PKG has the combination of a favorable earnings outlook and the potential for a positive surprise ahead of next week’s report. Wall Street is expecting earnings growth, with full-year EPS consensus at $10.45. Packaging Corp. Reports Next Week: Wall Street Expects Earnings Growth
  • Analysts raised earnings forecasts: Zacks Research made broad, incremental upward revisions to PKG’s projected EPS. Estimates increased to $10.44 for fiscal 2026, $12.51 for fiscal 2027 and $14.66 for fiscal 2028, from $10.42, $12.46 and $14.60, respectively. Quarterly estimates were also lifted, including Q4 2026 EPS to $2.78 from $2.76 and Q3 2028 EPS to $4.06 from $4.04. These revisions suggest improving expectations for the company’s longer-term earnings power. Packaging Corporation of America Earnings Estimate Revisions
  • Additional analyst optimism: A Truist Financial analyst indicated that Packaging Corporation of America’s stock is expected to rise, adding to the constructive sentiment surrounding the shares. Packaging Corporation of America Stock Price Expected to Rise
  • Upcoming catalyst: PKG is projected to release its earnings on Wednesday. While the estimate revisions are favorable, most increases are small, and the current-year Zacks estimate of $10.44 remains slightly below the broader $10.45 consensus. Packaging Corporation of America Projected to Release Earnings

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