Best Paper Stocks

Paper is used regularly in industries such as packaging, food and beverage, hospitality, home utilities, corporate and personal care. With major public venues like stadiums, malls, restaurants and hotels reopening, consider investing in these paper stocks for your financial growth. Check out Benzinga’s guide to help you invest in the best paper stocks from the paper industry. 

Here's what you need to know.

Quick Look at the Best Paper Stocks:

• 3M
• Neenah Inc
• Mercer International Inc
• International Paper
• International Paper

Overview: Paper Stocks

The earliest forms of paper were crafted to record information. The origins of paper can be rooted back to China when mulberry bark, hemp and water were mixed to make a pulp.  

The 1st paper mill was started in England in 1803. Its invention made paper a highly-traded commodity throughout Europe. It was mostly used for publishing books and newspapers. 

Domtar Corporation (NYSE: UFS) was founded in 1848 in England. The company focused on pulp and paper. By 1965, it generated revenue of over $1 billion. Soon after, Clearwater Timber Company (NYSE: CLW) was established in 1900 in Lewistown, Idaho. It quickly rose to become the world’s largest white pine mill. 

Tons of paper is produced for the growing needs of the packaging industry each year. Paper is a cost-effective method to transport, protect and preserve a wide array of products such as electronics, glassware and food. Since paper is biodegradable and recyclable, it has become a preferred alternative for plastics. 

Best Online Brokers for Paper Stock

Online brokers let you trade penny stocks, stocks, mutual funds, exchange-traded funds (ETFs) and foreign exchange. These platforms have educational resources at your disposal to research stocks before you invest. Most online brokers have customizable filters on the stock screeners for faster trading. For example, you can set the price range to quickly find the best stocks under $20.

Benzinga has put together these online brokers to help you get started. 

Features to Look for in Paper Stock

1. Consistent earnings per share growth. Every quarter, most of these stocks share report earnings per share (EPS). You can calculate the EPS of a company by dividing its net income by its total outstanding shares.  

1. Low price-earnings ratio. You can determine if a company is undervalued or overpriced by its price-earnings (P/E) ratio. Many paper stocks under $10 have the lowest P/E ratios. It also allows you to compare the market performance of a company on a standard benchmark with other companies in the industry.

1. A high volume of shares traded. You can consider the average trade volume of paper stocks to assess their liquidity. Stocks with higher liquidity can be easier for you to buy and sell.  

Craft Your Financial Success with Paper Stocks

Stocks from the paper industry spread a broad spectrum of price points. You can pick and choose these stocks to fit your financial goals and portfolio needs.

Frequently Asked Questions