Can Packaging Corp of America Still Surprise Wall Street After Its Run-Up?

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Packaging Corp of America has seen a significant stock rally with a 20-25% price gain over the past year, outperforming the broader market due to resilient box demand and strong pricing. Despite this run-up, the company’s recent earnings topped analyst expectations, driven by disciplined capacity management, favorable pricing, and cost control. Wall Street’s sentiment has turned more constructive, but analysts note the stock is trading at a premium, suggesting future gains hinge on continued modest volume growth, sustainability-driven upgrades, and disciplined capital deployment.

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