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Avery Dennison Corp

Avery Dennison Corp

AVY
$169.38USD↑+0.36%+0.61 today

MARKET CAP

12.8B

P/E (TTM)

19.1x

FWD P/E

—

DAY RANGE

$169 – $172

52W RANGE

$152
$200

AI Summary

Stalk
Sell NowMedium

AVY remains in a distribution phase with a bearish medium-term bias validated by its position below key moving averages and a failed reclaim of short-term EMAs after a test of the 200-day SMA. Short-term momentum shows a bounce at support but price remains under the 9/20 EMAs, signaling supply into rallies. Execution now favors sell-side participation on any rally toward the 50-day SMA/20-day EMA resistance band, as the long-term downtrend below the 200-day SMA persists.

  • ↑Q2 revenue rose 11% YoY to $2.63B, driven by 8% organic sales growth
  • ↑Adjusted EPS jumped 19% to $2.89; EBITDA margin up 50bps to 17.1%
  • ↓Geopolitical tensions and inflation dampen apparel demand; Europe sales soft
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Avery Dennison Corporation (NYSE: AVY) is a prominent player in the materials science sector, specializing in labeling and packaging solutions for diverse industries including retail, logistics, and food. The company operates within a competitive market and is recognized for its innovative approach, particularly in high-value categories such as intelligent labels. Avery Dennison's strategic focus is on enhancing operational efficiency and developing sustainable packaging solutions, which positions it favorably amid the evolving demands of the market.

Bull says

  • ↑Q2 revenue rose 11% YoY to $2.63B, driven by 8% organic sales growth
  • ↑Adjusted EPS jumped 19% to $2.89; EBITDA margin up 50bps to 17.1%
  • ↑Intelligent labels now 45% of sales, riding secular growth tailwinds
  • ↑Partnership with Walmart expands intelligent-label use in fresh grocery
  • ↑Strong FCF of $365M supports capital return and growth investment
  • ↑Stable stock volatility and effective leverage use support resilience

Bear says

  • ↓Geopolitical tensions and inflation dampen apparel demand; Europe sales soft
  • ↓Negative growth and revisions trends drive lowered Q3 EPS forecasts
  • ↓Heavy reliance on apparel segment risks revenue from customer destocking
  • ↓Rising material and labor costs strain margins; slight EBITDA margin decline
  • ↓13F ownership down, indicating waning institutional confidence
  • ↓Low profitability and earnings yield raise concerns on sustainable returns

Investment themes with AVY

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM
Quality↓ -0.56%

Companies with strong fundamentals and stability

NVDA · AAPL · MSFT

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-14-2026neutral

Transcript signals

Bull points

  • In the second quarter, we delivered adjusted earnings per share of $2.42, up 5% sequentially and comparable to prior year, as productivity offset lower volume in apparel and the net impact of pricing and raw material costs.
  • Adjusted EBITDA margin was strong at 16.6% in the quarter, up 20 basis points compared to prior year.
  • And we generated strong adjusted free cash flow of nearly $190 million in the quarter.

Bear points

  • As Dion mentioned, trade policy uncertainty during the quarter impacted our results, largely due to lower sourcing volume in apparel and general retail categories.
  • We estimate the indirect effect of tariffs lowered our earnings per share by more than 10 cents in the quarter.
  • sales were down 1% on an organic basis, as positive volume mix was more than offset by deflation-related price reductions.
Read full transcript analysis ›