International Paper Co. Stock Buy Recommendation Reiterated (IP)
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- Compared to its closing price of one year ago, IP's share price has jumped by 57.28%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Paper & Forest Products industry and the overall market, INTL PAPER CO's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $794.00 million or 22.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.98%.
- INTL PAPER CO's earnings per share declined by 47.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INTL PAPER CO increased its bottom line by earning $2.99 versus $1.47 in the prior year. For the next year, the market is expecting a contraction of 14.7% in earnings ($2.55 versus $2.99).
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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