IP Should I Buy
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International Paper Co (IP) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators show a bearish trend, options data suggests bearish sentiment, and recent analyst ratings and price target adjustments reflect mixed to cautious views. While the company has shown revenue growth, its negative net income and EPS are concerning. Given the lack of strong positive catalysts and the absence of proprietary trading signals, holding off on investing in IP at this time is recommended.
The MACD is negative and expanding (-0.736), indicating a bearish trend. RSI is at 21.738, suggesting oversold conditions but not a definitive buy signal. Moving averages are converging, showing no clear trend. Key support is at 41.252, with resistance at 43.974. The stock is trading near its support level, but no strong reversal signals are present.
Revenue increased by 31.14% YoY in Q4 2025, indicating strong top-line growth. Gross margin improved by 8.88% YoY to 19.75%.
Analysts have downgraded the stock or lowered price targets due to prolonged transformation costs and cost headwinds. No recent news or congress trading data to indicate positive momentum.
In Q4 2025, revenue increased by 31.14% YoY to $6.006 billion. However, net income remains negative at -$2.384 billion, up 1521.77% YoY. EPS improved to -4.52, up 976.19% YoY. Gross margin increased to 19.75%, up 8.88% YoY.
Analyst sentiment is mixed. UBS downgraded the stock to Neutral with a reduced price target of $44, citing prolonged transformation costs. Citi raised its price target to $47 but noted a 'light' Q4 and fiscal 2026 outlook. RBC Capital lowered its price target to $54 but remains optimistic about supply rationalization. Wells Fargo upgraded the stock to Equal Weight but remains cautious about the company's restructuring plans.
