Stock Pulse
Packaging Corp of America (PKG) recently reported Q4 2024 earnings, slightly missing EPS estimates but exceeding revenue projections with a 10.7% year-over-year sales increase [4], [6]. Despite long-term strength and a potential 12.6% stock upside driven by anticipated earnings growth, the company's share price dropped 12% last week, mirroring broader market concerns [1]. Concerns exist regarding weakening demand and declining free cash flow margin [2], [7], although strong financials, including an 18% ROE exceeding the industry average, suggest potential undervaluation [5]. An upcoming conference call on April 23, 2025, to discuss Q1 2025 results will be key for future direction [3]. While investments in new box plants aim to improve efficiency and capacity [1], ongoing trade tensions and market uncertainty present risks [1].