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Can Avery Dennison (AVY) Pull Off a Surprise in Q1 Earnings?
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Avery Dennison Corporation (AVY - Free Report) is set to release first-quarter 2017 results on Apr 26, before the opening bell.
In the prior quarter, the company reported a positive earnings surprise of 6.45%. It is worth noting that Avery Dennison outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average positive surprise being 6.17%.
Let’s see how things are shaping up at the company prior to this announcement.
Our proven model shows that Avery Dennison is likely to beat on earnings because it has the right combination of two key ingredients.
Zacks ESP: Avery Dennison has an Earnings ESP of +2.89%. This is because the Most Accurate estimate is pegged at $1.07, higher than the Zacks Consensus Estimate of $1.04. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Avery Dennison carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Meanwhile, Avery Dennison’s combination of a Zacks Rank #2 and +1.83% ESP makes us reasonably certain of an earnings beat.
What’s Driving the Better-Than-Expected Earnings?
Avery Dennison is poised to gain from increase in investment in specialty labels, graphics and reflective solutions business, as demonstrated by the acquisitions of Hanita Coatings, Mactac Europe, Hanita Coatings, and Ink Mill, as well as its investment to expand the plant in Luxembourg.
Further, the company’s execution of strategies continues to enhance its competitive advantage while driving profitable growth. Moreover, consistent focus on productivity, cost control and share repurchases are also anticipated to drive results.
Share Price Performance
Year to date, Avery Dennison outperformed the Zacks categorized Office Supply & Forms industry. The company’s shares gained around 17.1% compared with 12% growth recorded by the industry.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +9.84% and a Zacks Rank #1.
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #1.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Can Avery Dennison (AVY) Pull Off a Surprise in Q1 Earnings?
Avery Dennison Corporation (AVY - Free Report) is set to release first-quarter 2017 results on Apr 26, before the opening bell.
In the prior quarter, the company reported a positive earnings surprise of 6.45%. It is worth noting that Avery Dennison outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average positive surprise being 6.17%.
Let’s see how things are shaping up at the company prior to this announcement.
Avery Dennison Corporation Price and EPS Surprise
Avery Dennison Corporation Price and EPS Surprise | Avery Dennison Corporation Quote
Why a Likely Positive Surprise?
Our proven model shows that Avery Dennison is likely to beat on earnings because it has the right combination of two key ingredients.
Zacks ESP: Avery Dennison has an Earnings ESP of +2.89%. This is because the Most Accurate estimate is pegged at $1.07, higher than the Zacks Consensus Estimate of $1.04. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Avery Dennison carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Meanwhile, Avery Dennison’s combination of a Zacks Rank #2 and +1.83% ESP makes us reasonably certain of an earnings beat.
What’s Driving the Better-Than-Expected Earnings?
Avery Dennison is poised to gain from increase in investment in specialty labels, graphics and reflective solutions business, as demonstrated by the acquisitions of Hanita Coatings, Mactac Europe, Hanita Coatings, and Ink Mill, as well as its investment to expand the plant in Luxembourg.
Further, the company’s execution of strategies continues to enhance its competitive advantage while driving profitable growth. Moreover, consistent focus on productivity, cost control and share repurchases are also anticipated to drive results.
Share Price Performance
Year to date, Avery Dennison outperformed the Zacks categorized Office Supply & Forms industry. The company’s shares gained around 17.1% compared with 12% growth recorded by the industry.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Deere & Company (DE - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +9.84% and a Zacks Rank #1.
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #1.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>