Last Updated: 14 Sep 2024
Executive Summary
Avery Dennison Corp (AVY) is a leading manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products. The company has a strong financial position with a market capitalization of $17.67 billion, EBITDA of $1.39 billion, and EPS of $7.78. Avery Dennison has a trailing PE ratio of 28.2 and a forward PE ratio of 20.79, indicating that the stock is fairly valued. The company has a dividend yield of 1.61% and a strong track record of dividend growth.
Company Overview
Avery Dennison is a global company with operations in over 50 countries. The company's products are used in a wide range of industries, including consumer packaging, healthcare, transportation, and electronics. Avery Dennison has a strong brand reputation and a loyal customer base. The company is well-positioned to benefit from the growing demand for pressure-sensitive adhesive materials and other specialty products.
Fundamental Analysis
Avery Dennison has a strong financial position with a healthy balance sheet and strong cash flow. The company's revenue has grown steadily over the past several years, and its profit margins have remained stable. Avery Dennison is expected to continue to grow its revenue and earnings in the future.
The company's key financial ratios are as follows:
Trailing PE ratio: 28.2
Forward PE ratio: 20.79
Price-to-sales ratio: 2.055
Price-to-book ratio: 7.69
Dividend yield: 1.61%
Technical Analysis
Avery Dennison's stock price has been trading in a range between $232.54 and $162.62 over the past 52 weeks. The stock is currently trading near the middle of this range. The 50-day moving average is $215.56 and the 200-day moving average is $212.96. The stock is above both of these moving averages, indicating that it is in a bullish trend.
Short Term Outlook
Avery Dennison's stock is expected to continue to trade in a range in the short term. The stock is likely to face resistance at the $232.54 level and support at the $162.62 level. However, the stock could break out of this range if there is a positive catalyst, such as a strong earnings report or a positive analyst recommendation.
Long Term Outlook
Avery Dennison is a well-positioned company with a strong track record of growth. The company is expected to continue to grow its revenue and earnings in the future. The stock is fairly valued and offers a solid dividend yield. Avery Dennison is a good long-term investment for investors who are looking for a stable and growing company.
Analyst Recommendations
Analysts are generally positive on Avery Dennison's stock. The consensus analyst rating is "Buy." The average analyst target price is $241.83, which represents a potential upside of 10.2% from the current price.
