WestRock Company ( NYSE: WRK ), Packaging Corp. of America ( NYSE: PKG ), and International Paper ( IP ) were among the biggest gainers in the S&P during Monday’s volatile session.
Each stock had marked a double-digit decline on Friday after Jefferies analyst Philip Ng offered bearish commentary on containerboard supply and demand dynamics. In forecasting further difficult conditions, NG said the “challenging backdrop for IP, WRK, and PKG in the medium term” rivals the adverse trends seen during the Great Financial Crisis.
However, the sharp decline on Friday pushed each of the names into oversold territory on multiple technical indicators, such as the Relative Strength Index, for example. A 4.79% gain for WestRock Company ( WRK ), 3.69% rise for International Paper, and 3.94% gain for Packaging Corporation of America ( PKG ) served to edge each of the stocks off of the oversold levels signaled by the indicators.
For WestRock, the S&P’s leader into afternoon trading, the acquisition of HP PageWide T1190 Press was touted by management on Monday as well. The new product will be put to use in the company’s specialty printing facility in Lithia Springs, Georgia and is expected to be in operation by the end of September.
The new technology is aimed at cutting costs and increasing efficiencies, while providing greater flexibility for customer demands.
“We are honored to have WestRock select HP’s digital print solutions to contribute to its innovative and sustainable packaging production,” Ted Samotis, WW Director of Corrugated GTM, HP PageWide Industrial Packaging, said in a statement. “The HP PageWide T1190 Press will enable WestRock to disrupt the corrugated packaging supply chain and offer superior value to its customers.”
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WestRock, Packaging Corp. of America rebound from sharp Friday fall