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 Packaging Corporation of America ( PKG) 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 $42.2 million.
- PKG has traded 14,390 shares today.
- PKG is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in PKG with the Ticky from Trade-Ideas. See the FREE profile for PKG NOW at Trade-Ideas 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 2.5%. PKG has a PE ratio of 22.8. Currently there are 4 analysts that rate Packaging Corporation of America a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Packaging Corporation of America has been 774,600 shares per day over the past 30 days. Packaging Corporation of America has a market cap of $6.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.11 and a short float of 3% with 3.87 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Packaging Corporation of America as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth 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 3.1%. 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.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, PKG has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Containers & Packaging industry and the overall market, PACKAGING CORP OF AMERICA's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 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 ($3.12 versus $1.68).
- Powered by its strong earnings growth of 109.75% and other important driving factors, this stock has surged by 63.13% 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.
- You can view the full Packaging Corporation of America Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.