Avery Dennison Corporation (AVY) Buy or Sell Stock Guide

Last updated: Jun 04, '18

The analysis below may be helpful to you if you have any of the following questions about AVY stock:

  • Is AVY a buy or a sell?
  • Should I sell or hold AVY stock today?
  • Is AVY a good buy / a good investment?
  • What are AVY analyst opinions, recommendations, ratings?

Here are AVY stock buy reasons/signals:

1. Emerging-market adoption of consumer packaged goods will provide a long runway for sales growth.

2. As RFID technology becomes widely adopted, Avery’s growth should receive a hefty tailwind.

3. Avery’s dominance in retail branding information systems should lead to widening segment margins.

4. AVY quarterly revenue growth was 11.90%, higher than the industry and sector average revenue growth (3.19% and 4.90%, respectively).

5. AVY forward dividend yield is 1.69%, higher than the industry (1.31%) and sector (0.89%) forward dividend yields.

6. AVY average analyst rating is Buy.

7. AVY average analyst price target ($118.30) is above its current price ($106.34).

Here are AVY stock sell reasons/signals:

1. As pressure sensitive labels become globally ubiquitous, PSM margins will erode rapidly.

2. A lack of RFID intellectual property will lead to price competition for Avery’s RBIS segment.

3. After five years of margin improvement, Avery will struggle to secure further gains.

4. AVY profitability is declining. The YoY profit margin change was -1.01pp.

5. AVY forward P/E ratio is 16.16, and it’s high compared to its industry peers’ P/E ratios.

What are your thoughts on AVY?

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