On February 3, Towards Packaging, a sister firm of Precedence Research, published its report on the U.S. packaging market that stands at a valuation of above $215 billion as of the end of 2025. As per the report, the market is expected to register a compound annual growth rate of 4% during the coming decade, reaching the $319 billion mark by 2035.
The report highlights structural shifts within the packaging segment, led by sustainability focus, e-commerce demand, and regulations. These megatrends will continue to reshape the underlying dynamics of the industry, and going forward, companies that adapt to these shifts will have an edge over their peers.
The Paper & Packaging segment is known for offering a lot of resilience against economic downturns due to essential demand and consumer staple reliance. Hence, it can add to portfolio diversification benefits, along with stable dividend payouts by profitable companies. Given that the sector is shifting toward sustainability through biodegradable packaging, continued innovation in the segment seems inevitable.
For prudent investors, it is essential to be selective about companies that are rapidly remaking themselves in line with the megatrends mentioned above.
With that background, let’s explore our 8 Best Paper and Plastic Packaging Stocks to Buy According to Hedge Funds.
Our Methodology
To identify stocks for this article, we screened U.S.-listed paper and plastic packaging companies with market capitalizations above $2 billion and share prices above $5. We also shortlisted only stocks with positive upside potential according to TipRanks consensus as of the February 6 close.
In the final part of the screening, we identified the number of hedge funds that held positions in these stocks as of the end of the third quarter of 2025. Finally, we selected 8 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
8. Avery Dennison (NYSE:AVY)
Number of Hedge Fund Holders: 27
Avery Dennison (NYSE:AVY) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On February 6, the price target on Avery Dennison (NYSE:AVY) was raised from $215 to $224 by BMO Capital analyst John McNulty. The analyst maintained his Outperform rating on the stock following its fourth-quarter earnings beat. He forecasts growth and revaluation prospects for the company based on its focus on execution, positive secular trends, and better cash flows.
On January 6, Truist Financial also raised its price target for Avery Dennison (NYSE:AVY) from $213 to $234, maintaining a Buy rating on the stock. The upward revision now implies upside potential of more than 22%.
The firm expects slight weakness in packaging volumes in early 2026, but also noted that some CPGs are increasing volumes while successfully retaining price gains. The firm anticipates continued growth for beverage cans across North America and Europe, with expectations of price increments by containerboard producers due to their controlled supplies.
Avery Dennison (NYSE:AVY) is a materials science and digital identification solutions provider that operates through two segments, i.e., Materials Group and Solutions Group. It offers pressure-sensitive label materials, performance tapes products, converted products, and other adhesive-based materials. The company sells its products through brands like Avery Dennison, Fasson, and JAC.
7. International Paper Company (NYSE:IP)
Number of Hedge Fund Holders: 28
International Paper (NYSE:IP) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On February 2, Citi analyst Anthony Pettinari increased his price target on International Paper (NYSE:IP) from $46 to $47. The analyst maintained a Buy rating on the stock, even after the company reported “light” fourth-quarter results and a similar outlook for the coming year.
Back on January 30, Gabrial Hajde of Wells Fargo upgraded his rating on International Paper (NYSE:IP) from Underweight to Equal Weight. The analyst also increased the price target from $36 to $40.
Hajde reflected upon the company’s PSNA operations that have exhibited “step-change improvements” in the past couple of years. Negating his previous views on managing two distinct markets, the analyst now sees “a more balanced risk/reward profile” and has also aligned his stance with management that regions are better as independent companies.
International Paper (NYSE:IP) is a provider of renewable fiber-based packaging and pulp products, with a focus on consumer and industrial packaging. The business is structured into 2 segments: Industrial Packaging and Global Cellulose Fibers. In 2025, the company expanded its presence in North America and EMEA through the acquisition of DS Smith.
6. Sonoco Products (NYSE:SON)
Number of Hedge Fund Holders: 34
Sonoco Products (NYSE:SON) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On February 2, Truist Financial analyst Michael Roxland reaffirmed his Buy rating on Sonoco Products (NYSE:SON). The analyst also raised the stock price target from $53 to $54.
Roxland’s rating is based on Truist Financial’s 2026 outlook for packaging volumes, which currently appears meager. However, certain sub-segments will enjoy volumetric expansion along with the successful execution of price hikes.
On February 3, Sonoco Products (NYSE:SON) made a major announcement regarding its integrated efforts towards more sustainable operations. It relates to the company’s virtual power purchase agreement (VPPA) with Engie SA, for Engie’s Big Sampson Wind Project. It is a contract worth 140 MW of electricity per year, which translates into roughly 83% of the company’s consumption for its U.S.-based operations during 2025.
Sonoco Products (NYSE:SON) is a manufacturer and distributor of sustainable fiber-based and recycled packaging products, focusing on both industrial and consumer packaging. It is the largest provider of tubes, cores, and composite cans in the world. Some of its other offerings include round & shaped rigid paper products, steel & plastic containers, metal membrane ends, paper-based protective packaging products, and uncoated recycled paperboards.
5. Sealed Air Corporation (NYSE:SEE)
Number of Hedge Fund Holders: 34
Sealed Air Corporation (NYSE:SEE) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
As of the close of play on February 6, consensus sentiment around Sealed Air Corporation (NYSE:SEE) was Neutral. The stock received coverage from 8 analysts, 2 of whom assigned Buy ratings and 6 Hold ratings. With no Sell rating, it carries a projected median 1-year price target of $44.03, implying upside of more than 5%.
On January 6, Michael Roxland from Truist Financial raised his price target for Sealed Air Corporation (NYSE:SEE) from $45 to $49. The stock was assigned a Buy rating by the analyst, and it offers a revised upside potential of over 17%.
Roxland noted that some CPGs are effectively driving up volumes and retaining price gains. However, he sees some hurdles in the early part of 2026 for packaging volumes amid limited promotions. Going forward, he expects continued momentum for Beverage cans within North America and Europe. He also predicts that containerboard producers will raise prices successfully, given their disciplined supplies.
Sealed Air Corporation (NYSE:SEE) delivers Food and Protective packaging solutions. It sells products and services under different brands, including CRYOVAC, LIQUIBOX, BUBBLE WRAP, Optidure, and AUTOBAG. Through its two segments, it delivers integrated solutions related to food safety, shelf life extension, waste reduction, bagging systems, suspensions, and retention packaging.
4. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 34
Amcor plc (NYSE:AMCR) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On February 4, Ghansham Panjabi at Baird raised his target price on Amcor plc (NYSE:AMCR) from $50 to $54, resulting in a 12% upside. The analyst also reiterated an Outperform rating on the stock, citing revisions following the fourth-quarter results. Panjabi has an optimistic view and considers Amcor plc (NYSE:AMCR) as a top pick.
On February 5, Michael Roxland of Truist Financial also maintained his Buy rating on Amcor plc (NYSE:AMCR), with a target price of $60. This yields a potential upside of almost 25% for investors.
Roxland reflected on the company’s fourth quarter results, which highlighted synergies amounting to $55 million for the quarter, associated with G&A headcount cuts and procurement efficiencies. The figures were in line with the high end of management’s guidance, and there are expectations of roughly $70 to $80 million of synergies in the coming quarter as well.
Amcor plc (NYSE:AMCR) manufactures and sells packaging products through its Global Flexible Packaging Solutions and Global Rigid Packaging Solutions segments. It makes packaging materials for products across different segments such as food, beverages, pharmaceuticals, personal care, and more. It also delivers rigid packaging containers, closures, dispensing, and pharma devices that have applications within the food and beverage industries.
3. Smurfit Westrock (NYSE:SW)
Number of Hedge Fund Holders: 34
Smurfit Westrock (NYSE:SW) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On January 8, Ioannis Masvoulas of Morgan Stanley maintained an Overweight rating on Smurfit Westrock (NYSE:SW), with a price target of $53. His estimates imply upside of over 20% for investors.
Masvoulas attributed his stance to the company’s strategic tilt towards value focus, away from a volume-driven approach, within North America. He also highlighted management’s efforts to enhance plant-level operational accountability and to cut down their unprofitable contracts.
Earlier, on January 6, Anthony Pettinari of Citi also assigned a Buy rating to Smurfit Westrock (NYSE:SW). The analyst lowered his price target on the stock from $49 to $48, resulting in a revised upside of almost 9%.
Pettinari’s price revision is part of Citi’s broader adjustments to the packaging segment, in line with its 2026 forecasts. The firm believes that the outlook for volume setup within the sector appears challenging for the coming year.
Smurfit Westrock (NYSE:SW) is a producer and distributor of sustainable paper-based packaging products such as containerboards and corrugated containers. It delivers products across 40 countries, covering various segments such as consumer goods, e-commerce, retail, industrial, and food & beverages. The company was formed following the 2024 merger of Smurfit Kappa and WestRock.
2. Packaging Corporation of America (NYSE:PKG)
Number of Hedge Fund Holders: 40
Packaging Corporation of America (NYSE:PKG) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On January 29, Michael Roxland from Truist Financial reduced his price target for Packaging Corporation of America (NYSE:PKG) from $273 to $270. The analyst maintained a Buy rating on the stock despite the company missing its fourth-quarter earnings expectations.
He noted that a bearish trend in share price following the announcement leads to a compelling buying opportunity, as the company is well-positioned for 2026 amid strong demand. Roxland’s revised price target still yields an upside potential of 13% at the prevailing level.
On January 26, Citi analyst Anthony Pettinari raised his price target on Packaging Corporation of America (NYSE:PKG) from $226 to $227, maintaining a Neutral rating.
Pettinari attributed his Neutral rating to the company’s fourth-quarter announcement, in which results missed consensus estimates. In line with that, he shared a light outlook for Q1. However, the analyst expects positive indicators ahead of the price hikes expected in March.
Packaging Corporation of America (NYSE:PKG) sells containerboard, uncoated freesheet paper, and corrugated packaging products. They offer conventional shipping containers, multi-color boxes, and honeycomb protective packaging products with industrial and consumer sector applications. They also sell cut-size office papers, printing & converting papers, and white papers.
1. Graphic Packaging Holding Company (NYSE:GPK)
Number of Hedge Fund Holders: 48
Graphic Packaging (NYSE:GPK) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.
On February 4, Ghansham Panjabi at Baird reduced his target price on Graphic Packaging (NYSE:GPK) from $18 to $15, leaving a revised upside potential of over 13%. The analyst maintained his Neutral rating on the stock, based on near-term challenges for the business.
On February 4, Truist Financial analyst Michael Roxland reaffirmed his Hold rating on Graphic Packaging (NYSE:GPK) and lowered the price target from $18 to $14. He based his rating on the recently announced fourth-quarter results, which showed meager volumes and pricing for the business. The company reported $0.29 in adjusted earnings per share (EPS) for the quarter.
Moreover, Roxland also shed light on management’s 2026 guidance. As per the forecasts provided, EBITDA is expected to be between $1.05 to $1.25 billion, and EPS is expected to range between $0.75 and $1.15 for 2026.
Graphic Packaging (NYSE:GPK) is a vertically integrated maker of fiber-based consumer packaging materials that are utilized within several segments, such as food & beverage, foodservice, and household products. The business is structured into 3 segments: Americas Paperboard Packaging, Europe Paperboard Packaging, and Paperboard Manufacturing. Some of its offerings include unbleached, bleached & recycled paperboard, cups, lids, food containers, and specialized packaging machines.
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