Student Question

How has IP stock been doing lately?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The stock of International Paper (ticker symbol IP) is up nearly 2% year-to-date (stock price details are shown below). By comparison, the S&P 500, which is an index that measures the broader market, is down about 18%. This means that IP is outperforming the broader market thus far in 2022.

On Jan 3, 2022, the first day of trading in 2022, IP shares opened at $46.32. Last night, IP shares closed at $47.19. Thus, IP shares are up 1.8% year to date as of May 24, 2022, as noted. By comparison, the S&P 500 closed at $3,941.48 last night, after opening at $4,796.56 on Jan 3, 2022.

The stock trading of the S&P 500 represents the worst year-to-date performance in decades. With concerns driven by ongoing cases and emerging variants of COVID-19, supply side disruptions, logistics challenges, and the geopolitical climate with the war between Russia and Ukraine, investors are moving to the sidelines.

International Paper has initiated certain restructuring measures over the past year that are designed to help its operating performance. For example, in October 2021, the company spun off its printing papers segment, which is now publicly-traded under the company name Sylvamo and ticker symbol SLVM. In March 2022, International Paper announced that it would seek strategic alternatives for its 50% ownership interest in Ilim Group, a leading player in the Russian pulp and paper industry. International Paper has been Ilim Group’s joint venture partner since 2007.

Given the current geopolitical situation and internal challenges at Ilim, the move apparently was seen as a positive for International Paper, judging by recent stock market performance. Moreover, on April 28, 2022, International Paper reported first quarter 2022 results that beat consensus expectations, which was another catalyst for the shares.

See eNotes Ad-Free

Start your 48-hour free trial to get access to more than 30,000 additional guides and more than 350,000 Homework Help questions answered by our experts.

Get 48 Hours Free Access
Approved by eNotes Editorial