Worst Performing Materials Stocks of January 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy IP?
Source: seekingalpha
- International Paper's Poor Performance: International Paper Company (IP) leads the list with a -2.16% performance over the past month and a Quant Rating of 2.72 (Hold), indicating a weak position in the materials sector that may undermine investor confidence.
- Other Underperformers: Crown Holdings (CCK) and Avery Dennison (AVY) reported modest gains of +0.56% and +1.49% respectively, yet they still rank among the weakest in the materials industry, reflecting overall market weakness.
- RPM International's Low Rating: RPM International (RPM) achieved a +2.06% performance, but its Quant Rating of 1.95 (Sell) suggests a pessimistic outlook from the market, potentially leading to investor withdrawals.
- Steel Dynamics Stands Out: Despite being on the list of underperformers, Steel Dynamics (STLD) boasts a strong Quant Rating of 4.58 (Strong Buy), indicating robust performance in the materials sector that may attract investor interest in its growth potential.
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Analyst Views on IP
Wall Street analysts forecast IP stock price to rise
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 35.660
Low
36.00
Averages
48.35
High
57.80
Current: 35.660
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company is a sustainable packaging solutions company. The Company's segments include Packaging Solutions North America and Packaging Solutions EMEA. The Company's products and services include Packaging, Packaging Services, and Recycling. It provides corrugated packaging, solid fiber, corrugated sheets, retail displays, bulk packaging, and more. It also offers related services such as design and fulfillment to support these solutions. It provides a range of packaging and display services, from design and testing to fulfillment, including structural design, graphic design services, printing, testing, fulfillment and assembly and mechanical packaging. Its recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and our own box plants. It designs closed-loop recycling programs that move old corrugated containers (OCC) and other fiber-based recycling materials.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
International Paper Rated Among Cheapest High Dividend Stocks
- Coverage Initiation: On April 1, Deutsche Bank initiated coverage of International Paper (NYSE:IP) with a Hold rating and a $38 price target, highlighting the packaging sector's challenges from weak consumer demand and ongoing cost inflation.
- New Facility Construction: International Paper plans to build a 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi, with a $225 million investment aimed at replacing outdated infrastructure to enhance operational efficiency and product quality, with construction set to begin in June 2026 and operations targeted for Q4 2027.
- Regional Service Enhancement: The new facility will bolster service capabilities in the Mid-South region by incorporating modern safety and operational technologies, reducing costs, and improving product quality, with current Richland plant employees expected to transition to the new site, optimizing workforce allocation.
- Cautious Industry Outlook: While Deutsche Bank remains constructive on rigid and flexible packaging, it expresses caution regarding fiber-based packaging due to rising oil prices and tariff-related challenges, which could impact International Paper's long-term growth potential.
See More
International Paper's Mill Closures Signal Economic Warning
- Factory Closures and Job Cuts: International Paper's closure of two mills in Georgia and the layoff of over 1,000 workers may appear as routine cost-cutting, yet it serves as a potential warning signal for the broader economy.
- Declining Demand Trend: The company's reported 5% year-on-year drop in U.S. box shipments in Q2 marks its fourth consecutive quarterly decline, indicating weak market demand that could adversely affect overall economic performance.
- Production Capacity Decline: U.S. containerboard production capacity has decreased by approximately 9% in just eight months, a rate double that experienced during the 2009 recession, highlighting significant challenges facing the industry.
- Industry Consolidation and Market Control: The merger of International Paper with Smurfit Kappa has resulted in three major players controlling most of America's box-making capacity, which, while stabilizing prices, also allows for easier mill closures in response to declining demand.
See More
International Paper Shares Show Oversold Signal
- Oversold Indicator: International Paper Co (IP) has an RSI of 29.7, indicating significant recent selling pressure, which may signal a potential bottoming out, attracting bullish investors to seek buying opportunities.
- Price Fluctuation: The stock traded as low as $33.88 per share, nearing its 52-week low of $33.57, reflecting strong selling pressure in the market that could prompt investors to reassess its value.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 46.2, IP's oversold condition suggests that its price adjustment may be nearing an end, leading investors to look for rebound opportunities.
- Historical Performance: With a 52-week high of $56.13 and a current trading price of $34.79, IP has shown significant volatility over the past year, potentially providing investors with attractive buying opportunities.
See More
Packaging & Containers Stocks Lagging Market Performance
- Market Decline: On Thursday, the packaging and containers sector fell approximately 1.5%, indicating a weak performance that could undermine investor confidence in the industry.
- Smurfit Westrock Leads Decline: Smurfit Westrock's stock dropped about 2.7%, which may negatively impact its future market performance and attractiveness to investors.
- International Paper Also Affected: International Paper's shares also fell by approximately 2.7%, reflecting challenges the company faces in the current economic environment, potentially affecting its profitability and market share.
- Uncertain Industry Outlook: The overall market weakness has cast uncertainty over the future prospects of the packaging and containers sector, prompting investors to reassess their strategies to mitigate potential risks.
See More
International Paper Faces Demand Weakness and Restructuring Costs
- Significant Price Pressure: International Paper's stock is currently 36% below its 52-week high, and despite a recent bounce, technical indicators suggest institutions are still distributing shares rather than accumulating, indicating a lack of market confidence in its future performance.
- Bleak Earnings Outlook: The company reported a massive loss in 2025 due to goodwill impairment and restructuring charges, and while management points to adjusted EBITDA targets for 2026, the market remains skeptical about its recovery potential.
- Weak Demand Issues: Demand for box shipments and packaging has weakened on both sides of the Atlantic as consumer spending slows and industrial activity remains uneven, posing challenges for a capital-intensive business reliant on volume leverage.
- Analyst Estimate Cuts: Over the past 30 days, analysts have downgraded earnings estimates for both the current and next year, with the Zacks consensus estimate for the current year dropping from $2.51 to $1.85 and next year's estimate falling from $3.58 to $3.04.
See More
Latest Wall Street Ratings Overview
- Boeing Rating: Wells Fargo initiates coverage of Boeing with a Buy rating, forecasting a significant recovery in free cash flow as production normalizes, setting a price target of $250 based on a 20x FCF multiple on its 2028 forecast, indicating strong confidence in future growth.
- Disney Upgrade: Raymond James upgrades Disney from Market Perform to Outperform with a price target of $115, viewing the current macro backdrop and international visitation challenges as an attractive investment opportunity, reflecting optimism about its valuation.
- Microsoft Buy Rating: Benchmark initiates Microsoft with a Buy rating and a price target of $450, describing it as a juggernaut in artificial intelligence, leveraging its comprehensive portfolio of digital applications and cloud services to drive enterprise and consumer transformation, showcasing its strong market position.
- Algonquin Power Rating: Barclays initiates coverage of Algonquin Power & Utilities with an Overweight rating, citing the company's undervaluation and strong turnaround potential, indicating market confidence in its future performance.
See More
International Paper Rated Among Cheapest High Dividend Stocks
- Coverage Initiation: On April 1, Deutsche Bank initiated coverage of International Paper (NYSE:IP) with a Hold rating and a $38 price target, highlighting the packaging sector's challenges from weak consumer demand and ongoing cost inflation.
- New Facility Construction: International Paper plans to build a 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi, with a $225 million investment aimed at replacing outdated infrastructure to enhance operational efficiency and product quality, with construction set to begin in June 2026 and operations targeted for Q4 2027.
- Regional Service Enhancement: The new facility will bolster service capabilities in the Mid-South region by incorporating modern safety and operational technologies, reducing costs, and improving product quality, with current Richland plant employees expected to transition to the new site, optimizing workforce allocation.
- Cautious Industry Outlook: While Deutsche Bank remains constructive on rigid and flexible packaging, it expresses caution regarding fiber-based packaging due to rising oil prices and tariff-related challenges, which could impact International Paper's long-term growth potential.
See More
International Paper's Mill Closures Signal Economic Warning
- Factory Closures and Job Cuts: International Paper's closure of two mills in Georgia and the layoff of over 1,000 workers may appear as routine cost-cutting, yet it serves as a potential warning signal for the broader economy.
- Declining Demand Trend: The company's reported 5% year-on-year drop in U.S. box shipments in Q2 marks its fourth consecutive quarterly decline, indicating weak market demand that could adversely affect overall economic performance.
- Production Capacity Decline: U.S. containerboard production capacity has decreased by approximately 9% in just eight months, a rate double that experienced during the 2009 recession, highlighting significant challenges facing the industry.
- Industry Consolidation and Market Control: The merger of International Paper with Smurfit Kappa has resulted in three major players controlling most of America's box-making capacity, which, while stabilizing prices, also allows for easier mill closures in response to declining demand.
See More
International Paper Shares Show Oversold Signal
- Oversold Indicator: International Paper Co (IP) has an RSI of 29.7, indicating significant recent selling pressure, which may signal a potential bottoming out, attracting bullish investors to seek buying opportunities.
- Price Fluctuation: The stock traded as low as $33.88 per share, nearing its 52-week low of $33.57, reflecting strong selling pressure in the market that could prompt investors to reassess its value.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 46.2, IP's oversold condition suggests that its price adjustment may be nearing an end, leading investors to look for rebound opportunities.
- Historical Performance: With a 52-week high of $56.13 and a current trading price of $34.79, IP has shown significant volatility over the past year, potentially providing investors with attractive buying opportunities.
See More
Packaging & Containers Stocks Lagging Market Performance
- Market Decline: On Thursday, the packaging and containers sector fell approximately 1.5%, indicating a weak performance that could undermine investor confidence in the industry.
- Smurfit Westrock Leads Decline: Smurfit Westrock's stock dropped about 2.7%, which may negatively impact its future market performance and attractiveness to investors.
- International Paper Also Affected: International Paper's shares also fell by approximately 2.7%, reflecting challenges the company faces in the current economic environment, potentially affecting its profitability and market share.
- Uncertain Industry Outlook: The overall market weakness has cast uncertainty over the future prospects of the packaging and containers sector, prompting investors to reassess their strategies to mitigate potential risks.
See More
International Paper Faces Demand Weakness and Restructuring Costs
- Significant Price Pressure: International Paper's stock is currently 36% below its 52-week high, and despite a recent bounce, technical indicators suggest institutions are still distributing shares rather than accumulating, indicating a lack of market confidence in its future performance.
- Bleak Earnings Outlook: The company reported a massive loss in 2025 due to goodwill impairment and restructuring charges, and while management points to adjusted EBITDA targets for 2026, the market remains skeptical about its recovery potential.
- Weak Demand Issues: Demand for box shipments and packaging has weakened on both sides of the Atlantic as consumer spending slows and industrial activity remains uneven, posing challenges for a capital-intensive business reliant on volume leverage.
- Analyst Estimate Cuts: Over the past 30 days, analysts have downgraded earnings estimates for both the current and next year, with the Zacks consensus estimate for the current year dropping from $2.51 to $1.85 and next year's estimate falling from $3.58 to $3.04.
See More
Latest Wall Street Ratings Overview
- Boeing Rating: Wells Fargo initiates coverage of Boeing with a Buy rating, forecasting a significant recovery in free cash flow as production normalizes, setting a price target of $250 based on a 20x FCF multiple on its 2028 forecast, indicating strong confidence in future growth.
- Disney Upgrade: Raymond James upgrades Disney from Market Perform to Outperform with a price target of $115, viewing the current macro backdrop and international visitation challenges as an attractive investment opportunity, reflecting optimism about its valuation.
- Microsoft Buy Rating: Benchmark initiates Microsoft with a Buy rating and a price target of $450, describing it as a juggernaut in artificial intelligence, leveraging its comprehensive portfolio of digital applications and cloud services to drive enterprise and consumer transformation, showcasing its strong market position.
- Algonquin Power Rating: Barclays initiates coverage of Algonquin Power & Utilities with an Overweight rating, citing the company's undervaluation and strong turnaround potential, indicating market confidence in its future performance.
See More
