Reasons to Retain International Paper Stock in Your Portfolio

Core Insights - International Paper Company (IP) is experiencing growth due to strategic initiatives, ongoing investments, and acquisitions aimed at enhancing capacity and market presence [1][3][4] Group 1: Growth Initiatives - IP is expected to see volume growth in its Industrial Packaging segment in Q4 2024, driven by stable demand in e-commerce and strong performance in food and beverage sectors [1][12] - The company has entered an agreement to acquire DS Smith, which will strengthen its corrugated packaging business in Europe and focus on sustainable packaging [3][4] - The acquisition is projected to be accretive to earnings in the first year and generate at least $514 million in pre-tax cash synergies annually by the end of the fourth year post-closure [4] Group 2: Demand Trends - There has been a notable pickup in demand for IP's products after a period of softness in 2023, attributed to inventory destocking [5] - The fresh food segment is benefiting from consumer trends favoring home-cooked meals, while the beverage segment is expected to improve despite previous pressures [6] Group 3: Operational Focus - IP is exploring options for its Global Cellulose Fibers business, with around 75% of the benefits from strategic actions anticipated in 2025 [7] - The Global Cellulose Fibers volumes decreased in Q3 2024, but the company expects higher earnings sequentially in the Industrial Packaging segment for Q4 2024 due to prior price index increases and lower costs [8][12] Group 4: Financial Performance - The company's shares have increased by 57.1% over the past year, outperforming the industry growth of 46.9% [15]