9 Best Lumber Stocks to Invest in Now

7. International Paper Company (NYSE:IP)

Number of Hedge Fund Holders: 28

Market Capitalization: $25.97 billion

On February 2, UBS downgraded International Paper Company (NYSE:IP) to Neutral from Buy and lowered its price target to $44 from $51, citing expectations for continued estimate pressure in 2026 and 2027 due to prolonged transformation costs tied to its cost savings initiatives. The firm noted that a below-consensus first-quarter outlook suggests earnings will be weighted toward the back half of the year, with additional cost headwinds expected as European footprint actions progress.

On January 29, International Paper Company (NYSE:IP) guided 2026 enterprise net sales of $24.1–$24.9 billion, adjusted EBITDA of $3.5–$3.7 billion, and free cash flow of $300–$500 million, with first-quarter adjusted EBITDA expected between $740–$760 million. Management reiterated a long-term ambition of reaching $5 billion in EBITDA by 2027 as operational improvements and cost initiatives take hold. While near-term earnings face pressure from restructuring efforts, the company’s scale, disciplined capital allocation, and clear multi-year margin expansion targets provide a structured path toward improved profitability, making the stock attractive for investors seeking cyclical recovery exposure with defined cost optimization catalysts.

Founded in 1898 and headquartered in Memphis, Tennessee, International Paper Company (NYSE:IP) is a pulp and paper company employing approximately 39,000 people globally. It manufactures and sells a range of paper products and packaging, such as corrugated packaging, retail displays, and bulk packaging.