When should you quit your International Paper (NYSE:IP) holdings?

IP
 Stock
  

USD 37.12  0.02  0.05%   

While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to recap why this may be the case with International Paper. I will address few reasons this entity was abused by insiders due to the current market volatility. As of September 17, 2022, the company is listed at 35.23. International Paper has historical hype elasticity of -0.15. The average price elasticity to hype of competition is about 1.58. The entity is projected to decline in value after the next headline, with the price expected to drop to 35.08. The average volatility of media hype impact on International Paper stock price is huge, making predictions on the news or social media along less reliable. The price decline on the next news is expected to be -0.43%, whereas the daily expected return is currently at -0.25 percent. The volatility of related hype on International Paper is about 33.07% with expected price after next announcement by competition of 36.81 Allowing for the 90-day total investment horizon the next projected press release will be in about 4 days.
Published over two months ago
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The company's average rating is Hold from 12 analysts.
International Paper investment recommendation module can be used to check and cross-verify current trade recommendations provided by analysts evaluating the entity's potential to grow using all of fundamental, technical, data market data available at the time.
The company has Net Profit Margin (PM) of 8.93 %, which may suggest that it has sound control over its expenditures, executes well on its competitive polices, or have a solid pricing strategies. This is very large. Likewise, it shows Net Operating Margin (NOM) of 14.36 %, which signifies that for every $100 of sales, it has a net operating income of 0.14.
The successful prediction of International Paper stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as International Paper, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of International Paper based on International Paper hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to International Paper's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to International Paper's related companies.

Use Technical Analysis to project International expected Price

International Paper technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of International Paper technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of International Paper trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for International Paper, but it might be worth checking our own buy vs. sell analysis

Going after International Financials

International Paper generated the yearly revenue of 20.63 B. Reported Net Income was 1.42 B with gross profit of 5.53 B.
 2019 2020 2021 2022 (projected)
Receivables3.28 B3.06 B3.23 B3.58 B
Inventories2.21 B2.05 B1.81 B2.3 B

Cost of Revenue Breakdown

International Paper Cost of Revenue yearly trend continues to be very stable with very little volatility. Cost of Revenue is likely to drop to about 13.5 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. International Paper Cost of Revenue is very stable at the moment as compared to the past year. International Paper reported last year Cost of Revenue of 13.83 Billion
2015
2016
2017
2018
2019
2020
2021
2022
201514.31 Billion
201613.42 Billion
201714.8 Billion
201815.55 Billion
201912.67 Billion
202012.34 Billion
202113.83 Billion
202213.55 Billion

Anything left for International Paper after the decline?

Maximum drawdown is down to 8.17. It may hint at a possible volatility decline. International Paper exhibits very low volatility with skewness of -2.1 and kurtosis of 10.95. However, we advise investors to further study International Paper technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure International Paper's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact International Paper's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on International Paper

Although some other entities in the packaging & containers industry are either recovering or due for a correction, International Paper may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of International as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to International Paper.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of International Paper. Please refer to our Terms of Use for any information regarding our disclosure principles.

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