8 Best Lumber Stocks to Buy According to Hedge Funds

6. Mercer International Inc. (NASDAQ:MERC)

Number of Hedge Fund Holders: 25

Mercer International Inc. (NASDAQ:MERC) is one of the best lumber stocks to buy according to hedge funds. On August 5, TipRanks reported that TD Securities reduced the price target for Mercer International Inc. (NASDAQ:MERC) from $3.50 to $3.00 while keeping a Hold rating.

This decision came after the company reported its second quarter 2025 results.

Mercer International Inc.’s (NASDAQ:MERC) operating results for the second quarter of 2025 were impacted by ongoing uncertainties in global trade. Additionally, the weakening of the US dollar had a negative impact of about $26 million on the company’s Operating EBITDA for the second quarter of 2025 compared to the first quarter.

Due to the uncertain market situation, Mercer International Inc. (NASDAQ:MERC) decided to pause its quarterly dividend. The management said that the company will be looking to use its capital carefully during this time.

Mercer International Inc. (NASDAQ:MERC) is also working on implementing cost reduction initiatives and operational efficiency measures as it navigates this economic cycle. The company has a program called “One Goal One Hundred,” which aims to improve profitability by $100 million by the end of 2026, using 2024 as a baseline. The company expects to achieve $25 million in cost savings by the end of 2025.

Mercer International Inc. (NASDAQ:MERC) is a global forest products company that produces pulp, lumber, cross-laminated timber, glulam, pallets, and biofuels. The company has operations in the US, Canada, and Germany.