Shares of paper stocks were the biggest gainers in the S&P 500 on Friday, following a report that prices for the containerboard they make that is used in shipping boxes and packaging were going up.
Truist analyst Michael Roxland wrote in a Friday note that Packaging Corporation of America's plan to increase containerboard prices by $140 a ton in September will be positive not just for the Illinois-based firm, but also for rivals International Paper and Smurfit Westrock, who he said are likely to follow suit.
Shares of all three stocks closed sharply higher, with International Paper up 11.2%, making it the best-performing stock in the S&P 500 for the day. Smurfit Westrock shares rose 11.1%, for the number two spot, and Packaging Corp gained 8.8%.
"Higher containerboard prices should be positive for PKG, SW, and IP, the three largest North American producers," wrote Roxland, who rates all three stocks a Buy. He added that higher prices are being driven by rising freight and other costs, along with tight supply.
While International Paper saw the biggest gains Friday, it has also fared the worst over the past year, with shares down 24% for that period. The company recently revised its adjusted earnings before interest, taxes, depreciation, and amortization outlook for continuing operations in 2026 down to between $3.2 billion and $3.5 billion, from its earlier outlook of $3.5 billion to $3.7 billion.
In contrast, Packaging Corp shares have gained 23% over the last year, while those of Smurfit Westrock have dropped less than 1% in that same span.
Packaging Corp didn't respond to Barron's request for comment on the price increase, but has previously said it was planning to raise prices amid high demand and tight supplies. Neither Packaging Corp nor Smurfit Westrock immediately replied to Barron's request for comment.
BofA Securities analyst George Staphos cited the earlier June Amazon Prime Days this year as being among the factors impacting supply in a Thursday note. Online retailers like Amazon, Walmart and Target are among the biggest buyers of finished cardboard products.
Write to Anita Hamilton at anita.hamilton@barrons.com
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(END) Dow Jones Newswires
July 24, 2026 17:45 ET (21:45 GMT)
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