Smurfit WestRock Dives 2.12% on Two-Day Slide Amid Mixed Earnings, Margin Pressures

Smurfit WestRock (SW) fell to a record low on Thursday, with an intraday decline of 1.36%. The stock has now dropped 2.12% over two consecutive trading days, extending a broader underperformance against market benchmarks and sector peers.

The decline follows mixed third-quarter results reported on October 29, which triggered a 12.2% single-day drop. While revenue rose to $8 billion and the company turned a $245 million profit, concerns over margin pressures, weak demand in e-commerce and industrial sectors, and planned Q4 production downtime weighed on sentiment. Analysts remain divided, with Barclays cutting its price target by 25% to $47 despite a "Strong Buy" consensus among 17 of 17 covering analysts.

SW has underperformed both the S&P 500 and the Materials Select Sector SPDR Fund, losing 31.5% year-to-date compared to the S&P’s 14.1% gain. Its exposure to cyclical markets like e-commerce and industrial packaging has amplified vulnerability during macroeconomic uncertainty. Strategic adjustments, including capacity reductions, aim to stabilize margins but introduce short-term revenue risks, leaving investors weighing near-term challenges against long-term operational resilience.