Memphis, Tennessee-based International Paper Company (IP) produces and sells renewable fiber-based packaging and pulp products. Its operations span the Americas, Europe, and North Africa. With a market cap of $24.5 billion, International Paper operates through the Industrial Packaging and Global Cellulose Fibers segments.

The packaging giant has significantly underperformed the broader market over the past year. IP stock has observed a marginal 26 bps uptick over the past 52 weeks and plunged 14.4% in 2025, lagging behind the S&P 500 Index’s ($SPX) 18.4% surge over the past year and 7.6% returns on a YTD basis.

Narrowing the focus, IP has also lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 24.1% gains over the past 52 weeks and a 2.6% dip in 2025.

International Paper’s stock prices plummeted 12.9% in a single trading session following the release of its mixed Q2 results on Jul. 31. Although the company’s sales in Europe remain soft, its commercial efforts helped drive growth in North America, further it also experienced higher volumes and stable demand in North America. This led to its overall net sales surging 42.9% year-over-year to $6.8 billion, exceeding the Street's expectations.

However, International Paper experienced a significant contraction in margins due to continued cost headwinds and high depreciation and amortization. Its adjusted operating earnings dropped 45.6% year-over-year to $105 million, and adjusted EPS of $0.20 fell short of the consensus estimates by a staggering 47.4%.

However, for the full fiscal 2025, analysts expect IP to deliver an adjusted EPS of $1.92, up 69.9% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it has missed the projections on two other occasions.

The stock has a consensus “Moderate Buy” rating overall. Of the 12 analysts covering the stock, opinions include seven “Strong Buys,” one “Moderate Buy,” two “Holds,” and two “Strong Sells.”

This configuration is slightly more optimistic than two months ago, when six analysts gave “Strong Buy” recommendations.

On Jul. 10, Wells Fargo (WFC) analyst Gabe Hajde maintained an “Underweight” rating on IP, but raised the price target from $40 to $43.

International Paper’s mean price target of $56.70 suggests a 23.1% upside potential, while the Street-high target of $65 represents a 41.1% premium to current price levels.