What Happened?

Shares of packaging Corporation of America (NYSE: PKG) fell 3.8% in the afternoon session after the company reported third-quarter earnings that missed analyst expectations and issued weaker-than-expected guidance for the fourth quarter. The industrial products company posted earnings of $2.73 per share, which was $0.10 below the consensus estimate of $2.83. While sales and net income did increase compared to the same quarter in the previous year, the miss on profit expectations soured investor sentiment. Adding to the concerns, the company provided a forecast for the fourth quarter of $2.40 per share. This projection also fell short of the consensus analyst estimate of $2.63, signaling potential challenges ahead. The combination of a current earnings miss and a disappointing outlook for the next quarter prompted the stock's decline.

The shares closed the day at $204.93, down 3.9% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Packaging Corporation of America? Access our full analysis report here.

What Is The Market Telling Us

Packaging Corporation of America’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Packaging Corporation of America is down 9.1% since the beginning of the year, and at $204.83 per share, it is trading 17.7% below its 52-week high of $248.85 from November 2024. Investors who bought $1,000 worth of Packaging Corporation of America’s shares 5 years ago would now be looking at an investment worth $1,769.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.