Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Packaging Corporation of America as such a stock due to the following factors:
- PKG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.8 million.
- PKG has traded 804,478 shares today.
- PKG is trading at a new lifetime high.
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More details on PKG:
Packaging Corporation of America engages in the manufacture and sale of containerboard and corrugated packaging products for industrial and consumer markets in the United States. The stock currently has a dividend yield of 2.7%. PKG has a PE ratio of 25.2. Currently there are 3 analysts that rate Packaging Corporation of America a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Packaging Corporation of America has been 885,300 shares per day over the past 30 days. Packaging Corporation of America has a market cap of $5.7 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.10 and a short float of 2.1% with 1.40 days to cover. Shares are up 51.5% year to date as of the close of trading on Friday.
rates Packaging Corporation of America as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues rose by 16.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PACKAGING CORP OF AMERICA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PACKAGING CORP OF AMERICA increased its bottom line by earning $1.68 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($3.08 versus $1.68).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 111.6% when compared to the same quarter one year prior, rising from $39.79 million to $84.20 million.
- Powered by its strong earnings growth of 109.75% and other important driving factors, this stock has surged by 67.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for PACKAGING CORP OF AMERICA is currently lower than what is desirable, coming in at 26.71%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 9.95% is above that of the industry average.
- You can view the full Packaging Corporation of America Ratings Report.