Bull’s Eye: Graphic Packaging Holding Company (GPK)

GPK is an attractive short-term trade

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Graphic Packaging Holding Co GPK Paper Packaging 8.6 +30.95% $8.27

Why We Like The Stock:

Graphic Packaging Holding Co. (GPK) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Paper Packaging stocks have had a good year thus far, as evidenced by charts like International Paper (IP), Rock-Tenn (RKT), MeadWestvaco (MWV), Sonoco Products (SON), and GPK. Though GPK has been trending higher since October of 2012, it is a very attractive buy in the short-term. The stock recently hit highs of $8.89 towards the end of July before pulling back in August. Currently, the stock has based around $8.40, slightly above the 50-day moving average. We like the pullback and the base, and the fact that GPK is breaking above its short-term moving averages this morning. All signs point to GPK making a run back to $8.89, which would be a +4.95% gain.

We Would Be Buyers:

At the current price (~$8.47).

Company Profile:

Graphic Packaging Holding Company is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. It is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The company operates in two business segments: paperboard packaging and flexible packaging. The company’s customers include beverage, food and other consumer products industries. The company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific.  In January 2013, the Company acquired Contego Packaging Holdings, Ltd.

Stock Rating: 8.6

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Graphic Packaging Holding Company – Last Three Months

gpk 1 Bulls Eye: Graphic Packaging Holding Company (GPK)

Graphic Packaging Holding Company – Last 12 Months

gpk 2 Bulls Eye: Graphic Packaging Holding Company (GPK)

Graphic Packaging Holding Company – Last Five Years

gpk 3 Bulls Eye: Graphic Packaging Holding Company (GPK)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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