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Headquartered in Mentor, Ohio, Avery Dennison Corporation (AVY) is a global leader in materials science and manufacturing with a market cap of $17.41 billion. Specializing in labeling and packaging materials, as well as RFID technology, Avery Dennison plays a critical role in enhancing brand visibility, improving supply chain efficiency, and enabling digital transformation.
Shares of AVY have underperformed the broader market over the past year. The stock has gained 20.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. Also, in 2024, AVY is up 8.4% compared to SPX’s 18.1% rise on a YTD basis.
Narrowing the focus, AVY outperformed compared to the Consumer Discretionary Select Sector SPDR Fund (XLY). The exchange-traded fund has gained 5.1% on a YTD basis.
AVY reported its Q2 results on Jul. 23, with revenue of $2.24 billion, which exceeded Wall Street forecasts of $2.18 billion. Its adjusted EPS of $2.42 beat the consensus estimates of $2.25. AVY anticipates earnings between $9.30 to $9.50 per share for the full year. Following the release of its results, the stock declined 1.6%.
For the current fiscal year, ending in December, analysts expect AVY’s EPS to grow 19.1% year over year to $9.41 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 11 analysts covering AVY stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” two “Holds,” and one “Moderate Sell.”
On Jul. 24, Jeffrey Zekauskas from JPMorgan Chase & Co. (JPM) maintained a “Buy” rating on Avery Dennison, with a price target of $230, implying a potential upside of 5% from current levels.
The mean price target is $243.66, representing a premium of 11.2% compared to AVY’s current price levels. The Street-high price target of $274.60 suggests an upside potential of 25.4%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
