We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 Hits 52-Week High on Dividend Hike, Solid Q1
Read MoreHide Full Article
Shares of Avery Dennison Corporation (AVY - Free Report) crafted a 52-week high of $84.57 on May 16, before closing lower at $84.31, backed by the recent dividend hike and strong first-quarter earnings.
Avery Dennison has a market cap of roughly $7.5 billion. The average volume of shares traded in the last three months is around 649K. The stock delivered a solid one-year return of around 13.3%.
The company beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 5.53%.
Year to date, Avery Dennison has outperformed the Zacks classified Office Supplies & Forms sub-industry with respect to price performance. The stock rallied 13.3%, while the industry recorded gain of 4.3% over the same time frame.
Driving Factors
Avery Dennison’s shares have been on a rising trend after the company posted impressive first-quarter 2017 results on Apr 26. In the quarter, earnings and revenues improved on a year-over-year basis and also beat the Zacks Consensus Estimate on both the counts.
For 2017, the company hiked adjusted earnings per share guidance to the range of $4.50–$4.65, reflecting a stronger operating outlook and a lower tax rate. Its consistent execution of strategies continues to enhance competitive advantage while driving profitable growth.
Avery Dennison also anticipates organic sales growth of 3.5– 4.5% for full-year 2017, reflecting solid results in the first quarter. The company expects to deliver its sixth consecutive year of a double-digit increase in EPS and solid organic sales growth.
Notably, Avery Dennison announced a 10% dividend hike to 45 cents per share, earlier in April. The company’s balance sheet remains strong and has ample capacity to continue funding acquisitions, as well as returning cash to shareholders. It repurchased 0.5 million shares in the first quarter at an aggregate cost of $35 million and paid $36 million in dividends.
In addition, the company remains confident about the consistent execution of strategies that enhances competitive advantage while driving profitable growth and improving returns. Moreover, its focus on productivity, cost control, execution of strategies and new operating structure will drive results, moving ahead.
Avery Dennison currently carries a Zacks Rank #2 (Buy).
AGCO has an average positive earnings surprise of 40.39% for the trailing four quarters. Altra Industrial Motion generated an average positive earnings surprise of 15.93% in the past four quarters, while Parker-Hannifin has an average positive earnings surprise of 14.94% for the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Avery Dennison Hits 52-Week High on Dividend Hike, Solid Q1
Shares of Avery Dennison Corporation (AVY - Free Report) crafted a 52-week high of $84.57 on May 16, before closing lower at $84.31, backed by the recent dividend hike and strong first-quarter earnings.
Avery Dennison has a market cap of roughly $7.5 billion. The average volume of shares traded in the last three months is around 649K. The stock delivered a solid one-year return of around 13.3%.
The company beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 5.53%.
Avery Dennison Corporation Price and Consensus
Avery Dennison Corporation Price and Consensus | Avery Dennison Corporation Quote
Price Movement
Year to date, Avery Dennison has outperformed the Zacks classified Office Supplies & Forms sub-industry with respect to price performance. The stock rallied 13.3%, while the industry recorded gain of 4.3% over the same time frame.
Driving Factors
Avery Dennison’s shares have been on a rising trend after the company posted impressive first-quarter 2017 results on Apr 26. In the quarter, earnings and revenues improved on a year-over-year basis and also beat the Zacks Consensus Estimate on both the counts.
For 2017, the company hiked adjusted earnings per share guidance to the range of $4.50–$4.65, reflecting a stronger operating outlook and a lower tax rate. Its consistent execution of strategies continues to enhance competitive advantage while driving profitable growth.
Avery Dennison also anticipates organic sales growth of 3.5– 4.5% for full-year 2017, reflecting solid results in the first quarter. The company expects to deliver its sixth consecutive year of a double-digit increase in EPS and solid organic sales growth.
Notably, Avery Dennison announced a 10% dividend hike to 45 cents per share, earlier in April. The company’s balance sheet remains strong and has ample capacity to continue funding acquisitions, as well as returning cash to shareholders. It repurchased 0.5 million shares in the first quarter at an aggregate cost of $35 million and paid $36 million in dividends.
In addition, the company remains confident about the consistent execution of strategies that enhances competitive advantage while driving profitable growth and improving returns. Moreover, its focus on productivity, cost control, execution of strategies and new operating structure will drive results, moving ahead.
Avery Dennison currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Other stocks worth considering in the same sector are AGCO Corporation (AGCO - Free Report) , Altra Industrial Motion Corp. and Parker-Hannifin Corporation (PH - Free Report) . All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO has an average positive earnings surprise of 40.39% for the trailing four quarters. Altra Industrial Motion generated an average positive earnings surprise of 15.93% in the past four quarters, while Parker-Hannifin has an average positive earnings surprise of 14.94% for the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>