Top 15 Commodity Producers With the Highest Upside Potential

12. International Paper Company (NYSE:IP)

Analysts’ Upside Potential as of May 01: 25.75%

International Paper Company (NYSE:IP) produces cellulose fibers and packaging products. It accounts for approximately one-third of the North American corrugated packaging market. Although it operates in China, India, and Brazil, North America accounts for over three-quarters of its sales. The firm caters to various end markets, such as manufacturing, consumer goods, and industrial. The stock surged by more than 26% in the past year, making it one of the Best Commodity Stocks.

International Paper Company (NYSE:IP) produces cellulose fibers and packaging items. It accounts for approximately one-third of the North American corrugated packaging market. Despite having businesses throughout Europe, North America accounts for more than three-quarters of its sales. Although the business has been able to boost pricing and margins due to ten years of consolidation in the corrugated packaging market, recent years have seen a decline in profitability due to growing costs and more intense competition.

International Paper Company (NYSE:IP) announced first-quarter revenue growth of 28% YoY. Nonetheless, the quarter’s packaging demand was hindered by the potential impact of tariffs and economic uncertainties. Softer demand is still a challenge, although higher selling prices, mostly in North America, were able to offset this. Since practically all of its packaging is made and marketed in the same region, and because its inputs are all obtained locally, the company has no direct exposure to tariffs. However, a slowdown in consumer spending or the growth of the global gross domestic product could have a huge impact on volumes; thus, the company is exposed to indirect effects.

Nevertheless, International Paper Company (NYSE:IP) is still following its 80/20 approach, which involves cutting expenses in its legacy network and has now started to do the same with DS Smith. This should help margins in the face of a downturn in volume.

ClearBridge Mid Cap Strategy stated the following regarding International Paper Company (NYSE:IP) in its Q1 2025 investor letter:

“We exited our position in chemical manufacturer Ashland. We redeployed the proceeds to relatively new holding International Paper Company (NYSE:IP), which we believe represents a strong turnaround story under the leadership of a new CEO and his plan to optimize its footprint, adjust pricing dynamics and improve margins over the next few years.”