Company Overview - Packaging Corporation of America (PKG) has a market cap of $19 billion, making it the third-largest producer of containerboard and a leading producer of uncoated freesheet paper in North America [1] - The company operates through two main segments: Packaging and Paper, offering a wide range of corrugated packaging products, commodity and specialty papers, and communication papers [1] Market Position - PKG is classified as a "large-cap" stock, serving diverse industries including food, beverages, retail, and industrial markets across the United States [2] - The company's shares have declined 15.8% from its 52-week high of $250.82, but have increased 13.5% over the past three months, outperforming the Dow Jones Industrials Average's 9.8% return during the same period [3] Financial Performance - For Q2 2025, PKG reported adjusted EPS of $2.48, reflecting a 13% year-over-year increase, with revenue growing 4.6% to $2.2 billion, driven by stronger pricing and mix across both segments [5] - The gross margin improved to 22.2%, and the company provided a Q3 EPS guidance of $2.80, which further encouraged investors [5] Competitive Landscape - Rival International Paper Company (IP) has underperformed compared to PKG, with IP stock dropping 13.7% YTD and 7.1% over the past 52 weeks [6] - Despite PKG's stock underperformance relative to the Dow over the past year, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $223.67, indicating a 5.9% premium to current levels [6] Stock Performance - Year-to-date, PKG stock is down 6.2%, lagging behind the Dow's 8.9% rise, and has decreased over 2% over the past 52 weeks compared to the Dow's 10.2% gain [4] - The stock has been trading mostly above its 50-day moving average since mid-May [4]