5-Star Stocks Poised to Pop: Packaging Corp. of America

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containerboard and corrugated products company Packaging Corp. of America (NYS: PKG) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Packaging Corp. of America and see what CAPS investors are saying about the stock right now.

Packaging Corp. of Americafacts

Headquarters (founded)

Lake Forest, Ill. (1867)

Market Cap

$3.4 billion

Industry

Paper packaging

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Mark Kowlzan (since 2010)
CFO Richard West (since 1999)

Return on Equity (average, past 3 years)

20%

Cash/Debt

$515.1 million / $1.2 billion

Dividend Yield

3%

Competitors

Georgia-Pacific
International Paper
Rock-Tenn


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 189 members who have rated Packaging Corp. of America believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star coryjobe, succinctly summed up the bull case for our community:

They continue to perform well in 2012. Performance was primarily driven by higher volumes for containerboard and corrugated products by increases in depreciation, transportation, and interest expense. Lower energy costs ought to be a key earnings driver for the remainder of 2012 and 2013. An above-average dividend yield also provides for a nice income. They also maintain a solid balance sheet.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Packaging Corp. of America may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: Packaging Corp. of America originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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