Avery Dennison ( AVY Quick Quote AVY - Free Report) collaborates with the Internet of Things (IoT) inventor Wiliot to enhance IoT offering. Avery Dennison, the largest manufacturer of pressure-sensitive materials, RFID and digital ID solutions will design and manufacture Wiliot tags, which are Bluetooth-enabled stamp-sized computers that attach to any product or packaging. Avery Dennison will integrate Wiliot sensing services (SaaS) with its atma.io connected product cloud, allowing tag sensing information to be added to the end-to-end item-level data of a connected product. This initiative will help reduce waste and provide the utmost transparency and consumer connection. The partnership will accelerate the manufacturing capacity of Wiliot tags, while leveraging Avery Dennison’s market development, innovation and ROI expertise. Last month, Avery Dennison reported first-quarter adjusted earnings of $2.40 per share, beating the Zacks Consensus Estimate of $2.18. Revenues of $2,349 million also outpaced the Consensus Estimate of $2,299 million. The top line increased 12.7% year over year while the bottom line came in line with the year-ago quarter’s levels. Labeling non-durable consumer goods, like food, beverage, home and personal care products accounts for around 40% of Avery Dennison’s revenues. The company is witnessing soaring demand for these products amid the pandemic. Strong demand for consumer-packaged goods and e-commerce trends drive the Label and Graphic Materials segment. In the current year, the segment is well poised to benefit from solid top-line growth and margin expansion, volume improvement, focus on growing high-value categories led by specialty labels and contributions from productivity initiatives. Avery Dennison’s Retail Branding and Information Solutions (RBIS) segment is gaining from solid margin expansions, driven by strength in high-value categories and the base business. The segment is witnessing strong volume growth in Intelligent Labels, RFID and the core apparel label business, with particular strength and performance in premium channels and continued double-digit growth in external embellishments. The segment’s Intelligent Labels business continues to expect long-term annual growth of 15-20%, with solid growth in the apparel business. Apart from apparel, the RBIS segment is recording growth in new applications within food, logistics and home goods. The company is also investing in digital capabilities and solutions. 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 are Graphic Packaging Holding Company ( GPK Quick Quote GPK - Free Report) , Myers Industries ( MYE Quick Quote MYE - Free Report) and Packaging Corporation of America ( PKG Quick Quote PKG - Free Report) . While GPK and MYE flaunt a Zacks Rank #1 (Strong Buy), PKG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year. Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days. MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year. Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days. PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.