Sohini Mondal
2 min read
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With a market cap of $13.6 billion, Avery Dennison Corporation (AVY) is a global materials science and digital identification solutions company. It specializes in pressure-sensitive materials, labeling and packaging solutions, and RFID-based information technologies for a wide range of industries including retail, automotive, pharmaceuticals, and logistics.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Avery Dennison fits this criterion perfectly. With operations across the Americas, Europe, Asia, and beyond, the company serves clients in diverse markets such as home and personal care, food and beverage, apparel, and e-commerce.
Shares of the Mentor, Ohio-based company pulled back 25.5% from its 52-week high of $233.48. Shares of Avery Dennison have fallen 3.3% over the past three months, lagging behind the Materials Select Sector SPDR Fund's (XLB) marginal rise over the same time frame.
Longer term, AVY stock is down 7.1% on a YTD basis, underperforming XLB’s 3.4% gain. Moreover, shares of the maker of office products have dipped 23.4% over the past 52 weeks, a steeper decline than XLB’s 2.8% drop over the same time frame.
The stock has been trading below its 200-day moving average since late October last year.
Shares of Avery Dennison fell 2.6% on Apr. 23 after the company posted Q1 2025 adjusted EPS of $2.30, missing analysts’ expectations. Additionally, it pulled its annual forecast due to macroeconomic uncertainty and shifted to quarterly guidance, with a Q2 adjusted EPS outlook of $2.30 to $2.50, below the analyst consensus midpoint of $2.47. Revenue from its core materials group declined year-over-year, and total revenue dipped slightly to $2.2 billion, matching forecasts but reflecting weak momentum.
Nevertheless, rival Smurfit Westrock Plc (SW) has lagged behind AVY stock. Shares of Smurfit Westrock have declined 21.3% on a YTD basis.
Despite the stock’s underperformance relative to the sector, analysts are moderately optimistic on AVY. The stock has a consensus rating of “Moderate Buy” from the 13 analysts covering the stock, and as of writing, it is trading below the mean price target of $196.85.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
