Smurfit Westrock Plc (SW), headquartered in Dublin, Ireland, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products. Valued at $22.2 billion by market cap, the company operates in 40 countries and taps into the expertise of over 100,000 people, providing its customers with the most diverse, innovative, and sustainable range of renewable and recyclable packaging solutions.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and SW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the packaging & containers industry. SW’s merger has created a global packaging powerhouse with a significant competitive edge. The company's extensive operations and scale provide a diverse customer base, while its commitment to innovation and sustainability drives product development. By combining WestRock's consumer packaging expertise with Smurfit Kappa's corrugated packaging capabilities, SW offers a comprehensive portfolio of sustainable packaging solutions, positioning it as a key player in the industry.

Despite its notable strength, SW slipped 25.5% from its 52-week high of $56.99, achieved on Nov. 22, 2024. Over the past three months, SW stock declined 6.8%, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3.5% gains during the same time frame. 

In the longer term, shares of SW dipped 21.1% on a YTD basis and fell 22.1% over the past six months, underperforming XLY’s YTD losses of 5% and 9.1% over the last six months.

To confirm the bearish trend, SW has been trading below its 200-day moving average since late April. The stock has been trading below its 50-day moving average recently.

On May 1, SW shares closed down more than 3% after reporting its Q1 results. Its net sales stood at $7.7 billion, up 161.3% year over year. The company’s EPS has remained flat at $0.73 over the past year. 

In the competitive arena of packaging & containers, Packaging Corporation of America (PKG) has taken the lead over SW, showing resilience with 17% losses on a YTD basis and 18.4% fall over the past six months.

Wall Street analysts are bullish on SW’s prospects. The stock has a consensus “Strong Buy” rating from the 14 analysts covering it, and the mean price target of $55.63 suggests a potential upside of 31% from current price levels.