AVY Stock Analysis — Avery Dennison
Sector: Industrials
AI Verdict
Avery Dennison trades at a discount to industrial peers despite credible 23.7% earnings growth, so the numbers look cheap if its supply chain and RFID moat hold up.
Competitive Moat
Avery Dennison dominates the pressure-sensitive materials and labeling market, supplying adhesives and RFID tags to global packaging and logistics firms. Its moat comes from deep integration with supply chains and proprietary RFID technology, which creates high switching costs for large customers.
Summary
Avery Dennison is notable now for its expected 23.7% forward EPS growth, outpacing the typical industrials peer.
Where It Stands
Shares are up against a 1-year return of -9.82%, trade at 15.0x forward earnings versus the 20x sector median, and RSI at 55.2 signals a neutral setup.
Key Metrics
- RSI: 55.2 — Neutral
- Trailing P/E: 18.5x
- Forward P/E: 15.0x
- PEG Ratio: 0.73
- Earnings Growth: +0.2%
- Revenue Growth: +0.0%
- Market Cap: $12.6B
- Dividend Yield: 0.02%
- 1-Year Return: -9.82%
- 52-Week High: $199.54
- 52-Week Low: $152.42
Analyst Consensus
12 Buy · 5 Hold · 0 Sell (17 analysts)
Bull Case
You’re paying just 15.0x next year’s earnings for 23.7% EPS growth, which is cheap for the growth on offer in the industrials sector.
Bear Case
If the forward P/E reverts to the sector median of 20x, there’s upside, but if sentiment sours and it drops to 12x (the energy sector level), shares could lose another 20%.
Catalyst to Watch
Watch for quarterly earnings updates — if RFID adoption or EPS growth misses the 23.7% target, the low valuation could prove justified.