All three of the companies featured above are in strong positions to continue making higher profits in the future.
Acquisition has opened the door for KapStone Paper and Packaging Corp. (NYSE:KS) to expand into other cities, leading to an increase in sales. As the U.S. housing market continues to improve, the demand for wood products is likely to increase as well and will generate higher revenue.
Through the acquisition of AHP and Xerox Corporation (NYSE:XRX), Domtar Corp (USA) (NYSE:UFS) will expand both its diaper business and pulp and paper segment. Moreover, the acquired global brand name will help Domtar provide better service to its customers and generate higher revenue.
Improving containerboard prices will benefit International Paper Company (NYSE:IP) as the demand will continue to increase in the coming years. In addition, its asset sale initiative will reduce debt while it returns the remaining amount to its shareholders.
As a result, I recommend a buy for all three companies.
Shweta Dubey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article Pile Up Your Portfolio with These Paper Companies originally appeared on Fool.com.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.