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Avery Dennison Corporation (AVY), headquartered in Mentor, Ohio, is a leading global materials science and digital identification solutions company. Valued at $14 billion by market cap, the company provides a wide range of branding and information solutions. Its products and solutions include pressure-sensitive materials, radio frequency identification (RFID) inlays, tickets, tags, labels, and other converted products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AVY perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the packaging & containers industry. AVY's expertise in AI and machine learning, sets it apart in the industry. Its innovative RFID technology and diversified product portfolio solidify its competitive advantage and unlock new market potential.
Despite its notable strength, AVY slipped 24.8% from its 52-week high of $233.48, achieved on Jul. 23, 2024. Over the past three months, AVY stock has declined 7.2%, underperforming the Dow Jones Industrials Average’s ($DOWI) 1.6% losses during the same time frame.
In the longer term, shares of AVY dipped 6.1% on a YTD basis and fell 19.2% over the past 52 weeks, underperforming DOWI’s YTD marginal gains and 8.3% returns over the last year.
To confirm the bearish trend, AVY has been trading below its 50-day and 200-day moving averages since early October, 2024, with some fluctuations.
On Jan. 30, AVY shares closed down more than 5% after reporting its Q4 results. Its adjusted EPS of $2.38 surpassed Wall Street expectations of $2.37. The company’s revenue was $2.19 billion, falling short of Wall Street forecasts of $2.20 billion. AVY expects full-year adjusted EPS to be between $9.80 and $10.20.
AVY’s rival, Sealed Air Corporation (SEE) has lagged behind the stock, declining 13.3% on a YTD basis but outpaced the stock with 17.8% losses over the past 52 weeks.
Wall Street analysts are bullish on AVY’s prospects. The stock has a consensus “Strong Buy” rating from the 12 analysts covering it, and the mean price target of $217.17 suggests a potential upside of 23.6% from current price levels.
