Bull’s Eye Report: Clearwater Paper (CLW)

CLW is showing a great buy point today

   

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.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Clearwater Paper Corp CLW Paper Products 7.0 +23.67% $47.85

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.

Why We Like The Stock:

Clearwater Paper (CLW) 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 products stocks have had a strong year, as evidenced in charts like KapStone Paper and Packaging (KS), Shweitzer-Mauduit (SWM), and CLW. CLW is a more modest gainer, which makes it a relatively less risky pick. The stock has been trending higher since June of 2012, with sizable pullbacks along the way. After hitting highs around $53 in late March, CLW had a dismal month of April, falling down to the $45 area by the end of the month. Since then, we’ve seen some buyers step in. Currently, CLW is sitting on top of its major short-term moving averages, operating well above the 50-dma. It has had trouble breaking above the $50 price, though we’d be buyers here to play a break above, as the next logical step would be $53. Considering this stock isn’t particularly volatile, we’d give it some wiggle room with a stop at $47.85 to see if it can push north of $50.

We Would Be Buyers:

At the current price (~$49.57).

Company Profile:

Clearwater Paper Corporation is a producer of private label tissue and paperboard products. The company manufactures consumer tissue, away-from-home tissue (AFH), parent rolls machine-glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the United States and Canada. Its products are primarily pulp-based and manufactured in the United States and Canada. It operates in two segments: Consumer Products and Pulp & Paperboard. Its private label tissue products, such as facial and bath tissue and napkins, are used at-home and are sold to retailers and wholesale distributors. These include grocery, drug, mass merchants and discount stores. Its paperboard is sold in the packaging industry and is ultimately used by the customers to make packaging for products ranging from liquids to pharmaceuticals to consumer goods packaging.

Stock Rating: 7.0

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.

Clearwater Paper – Last Three Months

clw 1 Bull's Eye Report: Clearwater Paper (CLW)

Clearwater Paper – Last 12 Months

clw 2 Bull's Eye Report: Clearwater Paper (CLW)

Clearwater Paper – Last Five Years

clw 3 Bull's Eye Report: Clearwater Paper (CLW)

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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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