Graphic Packaging Holding Company (GPK)

(A Top Pick Nov 09/21, Down 7.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPK has triggered its stop at $19. To remain disciplined, we recommend covering the position at this time. When combined with the previous buy recommendation, this will result in a net investment gain of 7%.

Stockchase Research Editor: Michael O'Reilly Black Friday begins later this month and ecommerce sales will rise heading into Christmas, making this a seasonal opportunity to reiterate GPK, a paper and packaging giant, as a TOP PICK. Recent earnings beat analyst expectations by over 6% and revenues also beat estimates. It pays a reasonable dividend, backed by a payout ratio under 40% of cash flow. We recommend trailing up the stop (from $17.50) to $19.00, looking for upside to $24 -- potential of 17%. Yield 1.46% (Analysts’ price target is $23.69)

(A Top Pick Oct 22/20, Up 39.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPK is progressing well. We now recommend trailing up the stop (from $14.00) to $17.50. If triggered this would all but guarantee a investment return over 24%, when including the previous recommendation to cover half.

(A Top Pick Oct 22/20, Up 22.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPK has achieved its $17 target. To be disciplined we are recommending covering 50% of the position. We are also recommending trailing the stop to $14 -- just above the original recommended entry level.

Stockchase Research Editor: Michael O'Reilly There is a growing demand for packaging as ecommerce demand grows during the pandemic. Already shipping for the upcoming Black Friday through Christmas season is expected to be at capacity. Recent earnings showed revenue growth that was double expectations of 3.5%. It pays a reasonable dividend, backed by a 69% payout ratio. We would trade this with a $12.75 stop-loss, looking for a return to previous highs near $17 (over 20% upside) -- Yield 2.19% (Analysts’ price target is $17.08)