Packaging Corp Of America: Valuation Appears Too High Given Margin Pressure
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Packaging Corp Of America (PKG) shares have gained 40% over the past year but recently fell 5% after missing Q4 estimates. The company's valuation appears high at 26x earnings, with rising costs impacting profitability and leading to cautious Q1 guidance.
January 29, 2025 | 1:45 pm
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PKG shares fell 5% after missing Q4 estimates, raising concerns about its high valuation at 26x earnings. Rising costs and energy prices are impacting profitability, leading to cautious Q1 guidance.
PKG's high valuation at 26x earnings, combined with rising operating costs and energy prices, suggests limited upside potential. The recent 5% drop in share price after missing Q4 estimates and cautious Q1 guidance further supports a negative short-term outlook.
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