The applications of the paper industry are dynamic in nature and are rapidly evolving. This sector is resilient extremely and contains different growth catalysts of long-term. With the emergence of the digital age, this is believed by average investors that this paper sector would suffer as the trend is shifting to websites and ebooks. But this revolution of technology proved to be a greater as well as positive development and growth for paper stocks. At first, the ebooks are still beaten up by the demand made for physical books. The data obtained from the year 2019 demonstrated that the publishers of physical books in the USA have generated whopping revenues of $22.6 billion in the year 2018 whereby the revenues generated through ebooks was only $2.04 billion.
“A report from the New York Times said that the pandemic fueled the demand of paper-based books, squeezing the capacity of major book printers. As of August, unit sales of physical books jumped 5% compared to the same period last year. From early June to mid-August, print sales jumped by more than 12% over a period of 10 weeks, the Times report said, citing NPD BookScan. This has been a major driver of growth for paper stocks in the U.S.”
We are writing this post on the basis of Top 5 Paper Stocks In 2021 and our list starts with Clearwater Paper Corp. This firm is based in Washington and was started due to the spin-off from the REIT (real estate investment trust company. The firm is making wood products, consumer tissue, and bleached paperboard. The Clearwater Paper stock were covered by BMO Capital Markets on January 21. The price target of the company was $48 per share of Clearwater.
The next company on the list is Verso Corp which is amongst the top paper stocks at present. The company is engaged in making supercalendered, coated freesheets, coated groundwood, coated paper, and other specialty products. There are 2 paper mills of the company in the USA. This was established in the year 2006. NewPage Holdings was bought in 2015 by Verso. There are total of 15 hedge funds that are showing bullish behavior for this stock. SCW Capital Management of R. Wagner is the biggest hedge fund of this stock which holds around 2.2 million shares. There are some other best paper stocks as well which you can read directly at 10 Best Paper Stocks To Buy Now.