Clearwater Paper Corporation (CLW) Shares Soar 2.78% on Strong Sales

Clearwater Paper Corporation (CLW) shares surged 2.78% today, marking the second consecutive day of gains, with a total increase of 5.09% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 4.19%.

The strategy of buying CLW shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.16% annualized return and 66.88% of months experiencing positive returns. However, the overall performance was slightly underwhelming compared to the benchmark, with the benchmark generating a higher annualized return of 13.81% and a greater proportion of positive returns (69.38%). This suggests that while the strategy showed some potential, it may not have been optimal, especially considering the higher volatility and lower average returns relative to the benchmark.

Clearwater Paper Corporation reported a loss of $6.3 million in its first quarter. This financial setback could have contributed to the recent volatility in the stock price. However, the company also reported a notable 46% increase in net sales year-over-year for the first-quarter 2025 earnings. This significant increase in sales suggests that the company's revenue streams are robust, which could be a positive indicator for future growth.

Despite the first-quarter loss, the company's strong sales performance has likely reassured investors about its long-term prospects. The recent stock price gains, including a 2.25% increase on the last trading day, reflect this optimism. Additionally, the most recent analyst rating on CLW stock is a Buy with a $37.00 price target, suggesting a potential upside of 32.59%. This positive rating from analysts further supports the stock's recent upward trend.