International Paper Company (IP) has been designated as a “Bear of the Day” by Zacks Investment Research due to significant operational challenges, including cyclical demand weakness, restructuring costs, and plant closures. The stock, which is currently rated Zacks Rank #5 (Strong Sell), is trading approximately 36% below its 52-week high.
The company’s financial outlook worsened recently, with the Zacks Consensus Estimate for 2023 dropping from $2.51 to $1.85 and for 2024 from $3.58 to $3.04. This decline is attributed to a substantial 2025 loss linked to goodwill impairment and restructuring charges. Analysts are concerned about weakened demand for box shipments and packaging as consumer spending slows, which further complicates recovery efforts in this capital-intensive industry.
The Paper and Related Products industry is struggling, ranking in the bottom 3% of Zacks’ Industry Rank, with no stocks currently rated highly among them. Alternative stocks in the sector that hold a neutral position include Mercer International (MERC) and Smurfit Westrock (SW).
