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Avery Dennison Corporation (AVY), headquartered in Mentor, Ohio, is a materials science and digital identification solutions company. Valued at $17.3 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.
Avery Dennison's strategic emphasis on high-value segments and Intelligent Label solutions is driving mid-to-high-teens organic sales growth, while its innovative RFID technology and diversified product portfolio solidify its competitive advantage and unlock new market potential.
Despite its notable strength, AVY slipped 7.6% from its 52-week high of $233.48, achieved on Jul. 23. Over the past three months, AVY stock has declined 5%, underperforming the S&P 500 Index’s ($SPX) 4.7% gains during the same time frame.
In the longer term, shares of AVY rose 6.7% on a YTD basis and climbed 19.3% over the past 52 weeks, underperforming SPX’s YTD gains of 19.9% and solid 32.4% returns over the last year.
However, AVY has been trading above its 50-day and 200-day moving averages since mid-August, indicating a bullish trend.
On Jul. 23, AVY shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $2.42 exceeded Wall Street expectations of $2.25. The company’s revenue was $2.24 billion, exceeding Wall Street forecasts of $2.18 billion. AVY expects full-year adjusted EPS to be between $9.30 and $9.50.
AVY’s rival, Sealed Air Corporation (SEE), has had a rough ride. SEE's shares plummeted 3% on a YTD basis but gained 12.7% over the past 52 weeks, lagging behind AVY.
Wall Street analysts are moderately bullish on AVY’s prospects. The stock has a consensus “Moderate Buy” rating from the 11 analysts covering it, and the mean price target of $243.66 suggests a potential upside of 13% from current price levels.
On the date of publication, Neha Panjwani 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.
