Packaging Corporation Of America: Pandemic Recovery With Dividend

Mark Van Mater profile picture
Mark Van Mater
347 Followers

Summary

  • PKG's price may hit the $108.61 38.2% Fibonacci retracement level offering a good technical entry point if the overall market pulls back.
  • There was a pandemic slowdown but the trend in EPS, P/E Ratio, Net Profit Margins, Targets, Meal Kits and USA Production provides good indications for stock price appreciation.
  • PKG's October 24th press release offered decent third quarter results but a muted fourth quarter outlook.
  • It's a nice company for dividend investors who will see 4.6% if they are able to buy at $108.61.
  • Even if PKG's stock price only moves from $108.61 to $120 by April 20th, a 35.8% potential annualized return is possible including covered call premium and dividends.

Warehouse delivery check

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Investment Thesis

Packaging Corporation of America's (NYSE: NYSE:PKG) price may hit the $108.61 38.2% Fibonacci retracement level offering a good technical entry point if the overall market pulls back in the next few weeks. There was a pandemic

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This article was written by

Mark Van Mater profile picture
347 Followers
I have 27 years' experience in sales and marketing where my strength was always research and analysis.  I now have 12 years' experience as a full-time investor and independent research analyst. My primary focus is on value stocks showing strong growth potential.  The 3-part strategy includes recognizing macro trends, seeking innovation and capitalizing on event overreaction. The process begins by running filters with 28 key criteria, then continues by considering over 120 data points on each investment. I listen to quarterly earnings reports and read 10Q reports. Fundamental Analysis is used to select stocks, and Technical Analysis plus Artificial Intelligence are used to identify the entry, trend, and exit points.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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