Avery Dennison Corporation (AVY) Buy or Sell Stock Guide

Last updated: Sep 23, '17

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 5.50%, higher than the industry and sector average revenue growth (4.26% and -0.61%, respectively).

5. AVY profitability is improving. The YoY profit margin change was 0.67pp.

6. AVY forward dividend yield is 1.94%, higher than the industry (1.02%) and sector (1.65%) forward dividend yields.

7. AVY PEG ratio (P/E adjusted for growth) is 1.52, and it’s low compared to its industry peers’ PEG ratios.

8. AVY average analyst rating is Buy.

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 stock price ($98.76) is close to the 52-week high ($99.00). Perhaps now is a good time to sell?

5. AVY average analyst price target ($95.13) is below its current price ($98.76).

6. AVY short interest (days to cover the shorts) ratio is 4.53. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on AVY?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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