Smurfit Westrock Plc Faces Mixed Performance Amid Growing Market Challenges

Smurfit Westrock Plc (SW), based in Dublin, Ireland, specializes in producing and selling containerboard, corrugated containers, and various paper-based packaging products. With a market valuation of $27.9 billion, the company operates across 40 countries and employs over 100,000 people. SW provides a wide range of renewable and recyclable packaging solutions aimed at sustainability and innovation.

Stock Performance: A Closer Look

Despite being a prominent player in packaging, SW shares have lagged behind the overall market this year. While this stock has seen a slight decrease, the S&P 500 Index ($SPX) has experienced a nearly 4% increase. Interestingly, over the past six months, SW’s stock price has surged by 30.2%, exceeding the SPX’s 12.1% gain during the same period.

Comparative Gains and Recent Trends

When comparing performance, SW’s struggles become more evident against the Consumer Discretionary Select Sector SPDR Fund (XLY), which has increased by 1.2% year-to-date. However, SW’s remarkable 30.2% gain over the last six months outperforms XLY’s 28.2% returns for the same timeframe.

Quarterly Earnings Insights

On February 12, SW shares dropped by over 5% after announcing its Q4 earnings. The company reported an impressive 47.4% year-over-year increase in earnings per share (EPS), reaching $0.28. Net sales for the quarter were $7.5 billion, marking a significant increase of 163.4% from the year-ago quarter.

Forecasts and Analyst Consensus

For fiscal 2025, which ends in December, analysts predict SW’s EPS to rise by 58.2% to $3.29 on a diluted basis. However, SW has had a lackluster earnings surprise history, missing consensus estimates in three of the past four quarters while achieving one beat.

Among 14 analysts covering SW stock, a “Strong Buy” consensus has emerged, driven by nine “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”

Analyst Ratings Update

On February 14, Gabrial Hajde from Wells Fargo & Company (WFC) maintained a “Hold” rating on SW with a price target of $53. The average price target is set at $61.08, suggesting a 13.8% premium over current levels, while the highest target of $68 indicates potential gains of 26.7%.

On the date of publication, Neha Panjwani did not hold any positions in the securities mentioned in this article. All information is intended solely for informational purposes. View the Barchart Disclosure Policy for more details.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.