Pulp Industry's Impressive Performance: Stocks($IP, $MERC, $MATV...) Ascend by 6.95% Over the Month
The pulp sector encompasses companies primarily focused on the production of paper and its related products, often using wood as a foundational raw material. This encompasses the creation of pulp, paper, paperboard, and other cellulose-based items. Noteworthy companies operating in this domain include Clearwater Paper Corp., Glatfelter, and Schweitzer-Mauduit International, Inc.
Tickers in Industry - $IP, $MERC, $MATV, $CLV, $WRK, $SUZ
Swing Trader for Beginners: Trading in Markets Trending Down (TA&FA) - Annualized Return + 68%
Market Capitalization The pulp sector displays an average market capitalization standing at $5.9B. Suzano SA (SUZ) emerges as the sector's titan with a market cap of $13B. On the flip side, Mercer International (MERC) settles at the lower spectrum with a valuation of $551.5M.
Stock Performance Highlights Reflecting on stock performance, the average weekly growth rate for companies in this segment stands at -1.19%. However, on a monthly scale, there was an uplift of 6.78%. Notable stock movements include:
-
WestRock (WRK) encountered a decline of 5.32% as of August 17, 2023.
-
International Paper (IP) surged by 7% as noted on July 27, 2023.
-
WestRock (WRK) also enjoyed a growth spurt of 6.76% earlier in the month on July 1, 2023.
Trading Volume Insights Trading volumes provide insightful data on stock liquidity and investor engagement. For the group, the average weekly volume growth was marked at 5.94%, with a monthly uptick of 52.14%. Some significant volume surges included:
-
Suzano SA (SUZ) observed a remarkable growth of 262% over its 65-Day Volume Moving Average on June 17, 2023.
-
On the same day, Mercer International recorded a 218% spike above its 65-Day Volume Moving Average.
Fundamental Analysis Ratings For informed investment decisions, understanding the fundamental health of stocks is paramount. The aggregated ratings for this sector, where 1 denotes excellence and 100 represents the lower echelon, are as detailed below.
IP - On August 08, 2023, IP's 10-day RSI Indicator transitioned from the overbought range, potentially hinting at a change from its upward trajectory. Investors might contemplate divesting their holdings or exploring put options. Historical analysis by Tickeron's A.I.dvisor reveals that in 20 out of 28 similar occasions, the stock demonstrated a decline in subsequent days. This suggests a 71% likelihood of a downward move.
MERC - On August 16, 2023, MERC's Stochastic Oscillator emerged from the oversold region, possibly hinting at a bullish momentum for the stock. Investors might consider taking long positions or procuring call options. Historical data from Tickeron's A.I.dvisor shows that in 44 out of 57 similar scenarios, the stock witnessed an upward movement in the ensuing days. This suggests a promising 77% probability of a bullish trend.
MATV - On August 16, 2023, MATV recorded a -2.07% drop, marking its third consecutive day of decline. Historically, such a pattern is perceived as bearish. Examining past records, when MATV saw a three-day slide, it continued to descend in 248 out of 323 instances over the next month. This suggests a 77% likelihood of persisting in this bearish trend. Investors should remain cautious.
IP in downward trend: price dove below 50-day moving average on September 20, 2023
IP moved below its 50-day moving average on September 20, 2023 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on IP as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for IP entered a downward trend on September 14, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where IP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for IP moved above the 200-day moving average on September 19, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IP advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
IP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.388) is normal, around the industry mean (2.244). P/E Ratio (8.347) is within average values for comparable stocks, (24.056). Projected Growth (PEG Ratio) (2.212) is also within normal values, averaging (61.166). Dividend Yield (0.055) settles around the average of (0.036) among similar stocks. P/S Ratio (0.590) is also within normal values, averaging (10.717).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. IP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of paper and packaging products
Industry ContainersPackaging
IP and
Correlation & Price change
A.I.dvisor indicates that over the last year, IP has been closely correlated with PKG. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if IP jumps, then PKG could also see price increases.