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Avery Dennison Corporation (AVY - Free Report) has acquired majority assets of Ohio-based ACPO Ltd. for $87.6 million. The buyout includes coating, finishing and distribution operations at ACPO’s Ohio headquarters, along with three finishing and distribution sites in Atlanta, GA; Oak Creek, WI; and Vancouver, WA.
ACPO is a leading manufacturer of pressure-sensitive overlaminate products for label and flexible packaging markets. The latest buyout will fortify Avery Dennison’s leading position in core label material segments. Also, ACPO’s complementary overlaminate product will aid the company to expand its product portfolio. ACPO will now become part of Avery Dennison’s Label and Graphic Materials (LGM) segment.
Avery Dennison’s LGM segment serves essential categories that are witnessing higher demand owing to the pandemic. Labelling of non-durable consumer goods like food, beverage, home and personal care products account for around 40% of Avery Dennison’s revenues. The company has been witnessing soaring demand for these products amid the pandemic. Over the long term, growing demand from emerging markets on the back of rising middle class, and the consequent surge in demand for packaged goods and shift in labelling technology to pressure-sensitive materials will aid the company.
The LGM segment is also well poised for growth on solid top-line growth and continued margin expansion, volume improvement, focus on high-value categories led by specialty labels, and contributions from productivity initiatives.
These factors, along with the ACPO buyout, supported the company’s shares to climb to a fresh 52-week high of $157.25 during the Jan 4 trading session, before retracting to close at $151.90.
Share Price Performance
The company’s shares have gained 20.2% over the past three months compared with the industry’s growth of 23.5%.
Zacks Rank & Other Stocks to Consider
Avery Dennison currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) , Crown Holdings, Inc. (CCK - Free Report) and Ball Corporation . While AGCO flaunts a Zacks Rank #1 (Strong Buy), Crown Holdings and Ball Corp carry a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 42% in three months’ time.
Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 24.8% in the past three months.
Ball Corp has a long-term earnings growth rate of 5%. Over the past three months, the company’s shares have rallied 12.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Avery Dennison (AVY) Buys ACPO, Expands Product Portfolio
Avery Dennison Corporation (AVY - Free Report) has acquired majority assets of Ohio-based ACPO Ltd. for $87.6 million. The buyout includes coating, finishing and distribution operations at ACPO’s Ohio headquarters, along with three finishing and distribution sites in Atlanta, GA; Oak Creek, WI; and Vancouver, WA.
ACPO is a leading manufacturer of pressure-sensitive overlaminate products for label and flexible packaging markets. The latest buyout will fortify Avery Dennison’s leading position in core label material segments. Also, ACPO’s complementary overlaminate product will aid the company to expand its product portfolio. ACPO will now become part of Avery Dennison’s Label and Graphic Materials (LGM) segment.
Avery Dennison’s LGM segment serves essential categories that are witnessing higher demand owing to the pandemic. Labelling of non-durable consumer goods like food, beverage, home and personal care products account for around 40% of Avery Dennison’s revenues. The company has been witnessing soaring demand for these products amid the pandemic. Over the long term, growing demand from emerging markets on the back of rising middle class, and the consequent surge in demand for packaged goods and shift in labelling technology to pressure-sensitive materials will aid the company.
The LGM segment is also well poised for growth on solid top-line growth and continued margin expansion, volume improvement, focus on high-value categories led by specialty labels, and contributions from productivity initiatives.
These factors, along with the ACPO buyout, supported the company’s shares to climb to a fresh 52-week high of $157.25 during the Jan 4 trading session, before retracting to close at $151.90.
Share Price Performance
The company’s shares have gained 20.2% over the past three months compared with the industry’s growth of 23.5%.
Zacks Rank & Other Stocks to Consider
Avery Dennison currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) , Crown Holdings, Inc. (CCK - Free Report) and Ball Corporation . While AGCO flaunts a Zacks Rank #1 (Strong Buy), Crown Holdings and Ball Corp carry a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 42% in three months’ time.
Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 24.8% in the past three months.
Ball Corp has a long-term earnings growth rate of 5%. Over the past three months, the company’s shares have rallied 12.1%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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