NEW YORK (TheStreet) -- Latest data from the American Forest & Paper Association show that containerboard, boxboard, unbleached Kraft, and solid bleached folding paperboard production for February 2011 increased phenomenally from the year-ago month, indicating improved demand. Meanwhile, many paperboard producers like Caraustar Industries (CSAR), Rock-Tenn (RKT) and Sonoco Products (SON) have already announced price increases effective April 2011.
An industry analyst believes that while on one hand, prices for a few paper grades have already touched highs, the paper industry on the whole is still only halfway through its upward cycle. Furthermore, Bill Moore, a paper-recycling consultant with Moore & Associates, forecasts that going forward, he remains bullish for the recovered paper and finished paper markets. Thereby, he foresees a solid footing for the paper industry in the future.
A forest products industry analyst believes that despite challenges like tightening margins, factors like energy prices, capacity management at paper mills and a 2% growth in the economy would support exceptional growth in the paper industry. Additionally, recovered fiber purchases by Chinese mills reflect no signs of a slowdown.
Based on analysts' consensus estimates polled by Bloomberg, these six stocks from the paper industry have upsides ranging from 14% to 31% over the next 12 months, with strong buy and hold ratings. These companies reported a robust earnings quarter and fundamentals continue positive.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV