Is International Paper Stock Underperforming the S&P 500?

Memphis, Tennessee-based International Paper Company (IP) produces and sells renewable fiber-based packaging and pulp products. Valued at $19.8 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.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the packaging & containers industry. IP leads North America's corrugated packaging market with a strong brand and sustainable focus.
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Despite its notable strength, IP shares have slipped 36.6% from their 52-week high of $56.64, achieved on Mar. 25, 2025. Over the past three months, IP stock has declined 7%, underperforming the S&P 500 Index’s ($SPX) 3.1% decline during the same time frame.
Shares of IP fell 23.8% on a six-month basis and dipped 31% over the past 52 weeks, notably underperforming SPX’s six-month marginal losses and 16.7% returns over the last year.
To confirm the bearish trend, IP has been trading below its 200-day moving average since early April, 2025, with some fluctuations. The stock is trading below its 50-day moving average since late February.
IP's stock dropped due to earnings miss, strategic uncertainty, and cost pressures. The planned split into two companies aims to boost growth, but introduces short-term risks.
On Jan. 29, IP shares closed down by 6% after reporting its Q4 results. Its adjusted loss of $0.08 per share fell short of Wall Street expectations of EPS of $0.28. The company’s revenue was $6 billion, topping Wall Street forecasts of $5.9 billion.
IP’s rival, Packaging Corporation of America (PKG) shares have taken the lead over the stock, with a 2.1% downtick on a six-month basis and 6% gainsover the past 52 weeks.
Wall Street analysts are reasonably bullish on IP’s prospects. The stock has a consensus “Moderate Buy” rating from the 12 analysts covering it, and the mean price target of $48.17 suggests a notable potential upside of 34.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com