International Paper (IP) Shares Tumble 14.8% as Profitability Worsens; Analysts Prefer Endpoint Security Stock
International Paper’s (NYSE: IP) stock fell 14.8% over six months to $33.39 through May 29, 2026, while the S&P 500 gained 10.3%, according to a May 29 analyst note. The decline reflects deepening caution over the paper and packaging manufacturer’s eroding fundamentals. Revenue expanded at a sluggish 3.9% compound annual rate over five years, but earnings per share contracted 15.5% annually over the same period. The divergence signals that growth has failed to boost profitability. Return on invested capital also declined, suggesting diminishing opportunities for value-creating reinvestment. Trading at 18.9 times forward earnings, the valuation appears reasonable but offers inadequate compensation for the elevated downside risk, the analysts said. They highlighted a leading endpoint security platform as a superior alternative, citing its entrenched market position.