Smurfit WestRock Shares Soar 17.87% on Earnings Outlook

Smurfit WestRock (SW) shares rose 0.04% today, marking the seventh consecutive day of gains, with a 17.87% increase over the past week. The stock price reached its highest level since March 2025, with an intraday gain of 1.12%.

The strategy of buying SW shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 16.97%, slightly underperforming the market by 0.33 percentage points. With a final value of $3,869.61 for a $1,000 investment, the strategy showed the impact of compounded returns over 5 years, highlighting the importance of holding periods in achieving growth in the stock market.

Analysts have projected that Smurfit WestRock's earnings per share (EPS) will increase by 32.2% year-over-year for the fiscal year ending in December 2025, reaching $2.75. This anticipated growth in earnings could positively impact the company's stock price, as investors anticipate higher profitability and stronger financial performance.

Smurfit WestRock has announced plans to permanently close its coated recycled board (CRB) mill in St. Paul, Minnesota, and its packaging plant in Portland. These closures may affect operational capacities and financial performance, potentially influencing stock price movements. The decision to shut down these facilities is likely driven by strategic considerations aimed at optimizing the company's operations and reducing costs.

The company has approved a $150 million investment in Brazil, which includes enhancements to its forest operations. This strategic investment may impact future profitability and stock valuation. The investment in Brazil is part of Smurfit WestRock's broader strategy to expand its global footprint and enhance its operational capabilities, which could lead to long-term growth and increased shareholder value.

Nuveen Asset Management LLC significantly increased its stake in Smurfit WestRock by 51.6% during the fourth quarter, which suggests increased investor confidence and could affect stock price positively. This move by Nuveen Asset Management indicates a strong belief in the company's future prospects and its ability to deliver value to shareholders, potentially driving further interest and investment in Smurfit WestRock's stock.