Memphis, Tennessee-based International Paper Company (IP) produces and sells renewable fiber-based packaging and pulp products. Valued at $23.4 billion by market cap, the company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft, and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, and other personal care products.  

Shares of this global leader in sustainable packaging solutions have outperformed the broader market over the past year. IP has gained 20.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 8.2%. However, in 2025, IP stock is down 17.4%, compared to the SPX’s 4.7% decline on a YTD basis. 

Zooming in further, IP’s outperformance is also apparent compared to the Materials Select Sector SPDR Fund (XLB). The exchange-traded fund has dropped about 7.1% over the past year. However, the ETF’s marginal dip on a YTD basis outshines the stock’s double-digit losses over the same time frame.

The shift to digital media, reducing demand for graphic paper have led companies to focus on packaging and specialty paper to stay relevant. Despite challenges, the industry's exposure to consumer-focused markets ensures stable earnings growth. Demand for sustainable packaging and eco-friendly solutions is expected drive market growth for IP. Cost reduction strategies and synergies from acquisitions will further support growth in the industry, supporting IP’s strong performance.

On Apr. 30, IP shares closed down more than 4% after reporting its Q1 results. Its adjusted EPS of $0.23 missed Wall Street expectations of $0.35. The company’s revenue was $5.9 billion, falling short of Wall Street forecasts of $6.6 billion.

For the current fiscal year, ending in December, analysts expect IP’s EPS to grow 106.2% to $2.33 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 11 analysts covering IP stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” three “Holds,” and one “Strong Sell.”

This configuration is more bullish than two months ago, with five analysts suggesting a “Strong Buy.” 

On May 5, Seaport Research analyst Mark Weintraub kept a “Buy” rating on IP and lowered the price target to $60, implying a potential upside of 35% from current levels.

The mean price target of $57.43 represents a 29.2% premium to IP’s current price levels. The Street-high price target of $65 suggests an ambitious upside potential of 46.2%.