Packaging Corp. of America stock underperforms rivals despite daily gain
Updated
Updated · MarketWatch · May 6
Packaging Corp. of America stock underperforms rivals despite daily gain
8 articles · Updated · MarketWatch · May 6
Shares rose 1.85% to $226.82 on Wednesday, lagging International Paper, Graphic Packaging and Sonoco as the S&P 500 gained 1.46% and the Dow added 1.24%.
The advance marked Packaging Corp.'s second straight daily gain, but the stock still finished behind peers, which climbed between 3.61% and 5.21% in the broader market rally.
Packaging Corp. closed 9.09% below its 52-week high of $249.51 reached on 12 February, while trading volume of 710,052 was well below its 50-day average.
With massive investments in efficiency, why did Packaging Corp. underperform its rivals during a market rally?
PKG is closing plants while raising prices. Is this a winning strategy or a risky gamble in an oversupplied market?