We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avery Dennison (AVY) Hits 52-Week High, Can the Run Continue?
Read MoreHide Full Article
Shares of Avery Dennison (AVY - Free Report) have been strong performers lately, with the stock up 9.2% over the past month. The stock hit a new 52-week high of $188.81 in the previous session. Avery Dennison has gained 21.3% since the start of the year compared to the 34.1% move for the Zacks Industrial Products sector and the 17.1% return for the Zacks Office Supplies industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 3, 2021, Avery Dennison reported EPS of $2.27 versus consensus estimate of $2.17 while it beat the consensus revenue estimate by 3.13%.
For the current fiscal year, Avery Dennison is expected to post earnings of $7.94 per share on $7.48 billion in revenues. This represents a 11.83% change in EPS on a 7.28% change in revenues. For the next fiscal year, the company is expected to earn $8.65 per share on $7.76 billion in revenues. This represents a year-over-year change of 8.98% and 3.72%, respectively.
Valuation Metrics
Avery Dennison may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Avery Dennison has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.5X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Avery Dennison currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Avery Dennison meets the list of requirements. Thus, it seems as though Avery Dennison shares could have a bit more room to run in the near term.
How Does Avery Dennison Stack Up to the Competition?
Shares of Avery Dennison have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Acco Brands (ACCO - Free Report) , ScanSource (SCSC - Free Report) , and Unifirst (UNF - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Avery Dennison, even beyond its own solid fundamental situation.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Avery Dennison (AVY) Hits 52-Week High, Can the Run Continue?
Shares of Avery Dennison (AVY - Free Report) have been strong performers lately, with the stock up 9.2% over the past month. The stock hit a new 52-week high of $188.81 in the previous session. Avery Dennison has gained 21.3% since the start of the year compared to the 34.1% move for the Zacks Industrial Products sector and the 17.1% return for the Zacks Office Supplies industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 3, 2021, Avery Dennison reported EPS of $2.27 versus consensus estimate of $2.17 while it beat the consensus revenue estimate by 3.13%.
For the current fiscal year, Avery Dennison is expected to post earnings of $7.94 per share on $7.48 billion in revenues. This represents a 11.83% change in EPS on a 7.28% change in revenues. For the next fiscal year, the company is expected to earn $8.65 per share on $7.76 billion in revenues. This represents a year-over-year change of 8.98% and 3.72%, respectively.
Valuation Metrics
Avery Dennison may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Avery Dennison has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.5X versus its peer group's average of 9.9X. Additionally, the stock has a PEG ratio of 3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Avery Dennison currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Avery Dennison meets the list of requirements. Thus, it seems as though Avery Dennison shares could have a bit more room to run in the near term.
How Does Avery Dennison Stack Up to the Competition?
Shares of Avery Dennison have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Acco Brands (ACCO - Free Report) , ScanSource (SCSC - Free Report) , and Unifirst (UNF - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Avery Dennison, even beyond its own solid fundamental situation.