Avery Dennison (AVY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 23, 2024, might help the stock move higher if these key numbers are better than exp ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Sty ...

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Avery Dennison (AVY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.Avery Dennison is one of 218 companies in the Industrial Products group. The Industrial Products group currently sits at #5 within the Zacks Sector Rank. The Zacks ...

Core Viewpoint - Avery Dennison Corporation is experiencing a turnaround in earnings with expectations of double-digit EBITDA and EPS growth in the coming years, despite its share price not being a bargain [4][28]. Company Overview - Avery Dennison is a global materials science and digital identification solutions company, providing a wide range of branding and information solutions [6]. - The company operates through two segments: the Materials Group (69% of net sales) and the Solutions Group (31% of net sales) [6]. - Recent acquisitions include Silver Crystal Group, LG Group, and Thermopatch, costing approximately $231 million [6]. Financial Performance - In Q1 2024, net sales increased by 4% to $2.2 billion, and EPS jumped by 43% to $2.13 [8]. - Full-year 2024 guidance includes EPS of $8.60 - $9.10, significantly higher than the previous year's $6.48 [10]. - The company has a strong balance sheet with total assets of $8.255 billion and total liabilities of $6.051 billion [8]. Growth Prospects - Revenue and EBITDA have shown slow growth over the past decade, but are rebounding after a decline in 2023 [9]. - Analysts expect significant earnings gains this year, with a consensus on double-digit growth in 2025 and 2026 [10][11]. - Intelligent Labels, a suite of IoT technologies, is identified as a key growth driver [11]. Competitive Landscape - Competitors include UPM Raflatac, Lintec Corporation, 3M Company, and Nitto Denko Corporation [7]. - Avery Dennison claims competitive advantages such as technical expertise, scale, and product innovation, reflected in its margins [7]. Profitability Metrics - The company shows strong profitability metrics, with a gross profit margin of 28.01% and a return on common equity of 26.10% [15]. - However, its five-year net income margin lags behind the sector median [15][16]. Dividend Analysis - Avery Dennison has a strong dividend safety grade of A+, with a consistent track record of dividend growth over the past 13 years [18][19]. - The average dividend yield over the past five years is 1.61%, lower than the sector median of 2.09% [19]. Valuation Insights - The stock is considered expensive based on traditional valuation metrics, with a P/E ratio of 25.51 compared to the sector median of 17.38 [23]. - An intrinsic value calculation suggests the stock is fairly valued or slightly undervalued, with a target price of $231.50 [24][25]. Management and Strategy - The company aims for superior value creation through profitable growth and capital discipline, with a focus on emerging markets and innovation [13][28]. - CEO Deon Stander emphasizes growth as a key component of the company's strategy [13].

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Avery Dennison (AVY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Avery Dennison is a member of our Industrial Products group, which includes 222 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Ran ...

Sansert Sangsakawrat/iStock via Getty Images Thanks for stopping by for another edition of upcoming dividend increases. This week, we have another thirteen increases alongside one dividend king! Dividend King PepsiCo announced their yearly increase, this time around 7.1%. That extends the beverage and snack producer's 52-year streak. The overall group of companies has an average increase of 4.9% and a median of 4.4%. My investment strategy involves buying and adding companies that consistently increase ...

A month has gone by since the last earnings report for Avery Dennison (AVY) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Avery Dennison due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Avery Dennison Q1 Earnings Beat, Revenues Rise Y ...

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperformance [2] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions based on recent price changes and earnings estimate shifts [3] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator for stock selection alongside the Zacks Rank [4] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - There are over 800 top-rated stocks available, making selection potentially overwhelming for investors [5] Stock to Watch: Avery Dennison (AVY) - Avery Dennison Corporation, based in Pasadena, CA, specializes in pressure-sensitive materials and various converted products, serving a global clientele [7] - Currently rated 3 (Hold) on the Zacks Rank, AVY has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 7% over the past four weeks [7] - Recent upward revisions in earnings estimates by three analysts for fiscal 2024 have raised the Zacks Consensus Estimate by $0.03 to $9.31 per share, with an average earnings surprise of 1% [7]

Avery Dennison (AVY) reported $2.15 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 4.2%. EPS of $2.29 for the same period compares to $1.70 a year ago.The reported revenue represents a surprise of +0.16% over the Zacks Consensus Estimate of $2.15 billion. With the consensus EPS estimate being $2.15, the EPS surprise was +6.51%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2024 was $2.29, up 6% sequentially and up 35% compared to the prior year, driven by higher volume and productivity [13] - Sales increased by 4% excluding currency effects and 3% on an organic basis compared to the prior year, with adjusted EBITDA margin at 16.3%, up 270 basis points year-over-year [13] - Free cash flow was strong at $58 million, an increase of $129 million compared to the prior year, with a net debt to adjusted EBITDA ratio of 2.3% [14] Business Line Data and Key Metrics Changes - Materials Group sales were up 2% excluding currency and on an organic basis, driven by low-double digit volume growth, while Solutions Group sales increased by 10% excluding currency and 6% on an organic basis [15][17] - Intelligent Labels grew mid-to-high teens in Q1, with strong growth in non-apparel categories, while apparel began to recover [10][17] - The Materials Group achieved an adjusted EBITDA margin of 18.3%, up 4 points year-over-year, while Solutions Group's adjusted EBITDA margin was 16.1%, up 40 basis points compared to the prior year [16][17] Market Data and Key Metrics Changes - North America volume was up mid-single digits year-over-year, with Europe showing significant growth of more than 30% as destocking cycles ended [15] - Emerging markets, particularly India and ASEAN, showed strong volume growth, with China up mid-single digits [7][15] - Apparel imports in North America showed slight improvement, although retailers remain cautious in their near-term sourcing plans [8][30] Company Strategy and Development Direction - The company aims for approximately 20% growth in its Intelligent Labels platform in 2024, focusing on expanding its leadership position at the intersection of physical and digital [10][11] - The company is committed to investing in organic growth and acquisitions while returning cash to shareholders, with $81 million returned in Q1 through share repurchases and dividends [14] - The company maintains a disciplined capital allocation strategy and is focused on balancing top-line growth with margin sustainability [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, citing diverse and growing markets with clear catalysts for long-term growth [11] - The company reaffirmed its full-year guidance for strong earnings growth in 2024, despite uncertainties in the operating environment [12][18] - Management noted that while apparel industry volumes are expected to normalize mid-year, there remains caution in the market [30][66] Other Important Information - The company anticipates modest inflation in raw material costs in Q2, particularly in paper, and is addressing these through product reengineering and pricing actions [16][42] - The company has deepened and broadened its supply chain to mitigate risks from potential future strikes and supply chain disruptions [64] Q&A Session Summary Question: Insights on Intelligent Labels guidance and margin expectations - Management noted lower-than-expected volumes in logistics due to slower parcel shipments but remains confident in the growth potential of Intelligent Labels, particularly in apparel [22][23] - Solutions margins were expected to decrease sequentially due to seasonality and higher employee costs, but management anticipates improvement in Q2 [25][26] Question: Apparel market normalization and pricing impact - Management highlighted slight improvements in apparel imports and inventory levels, supporting confidence in normalization by mid-2024 [29][30] - Pricing impact in Q1 was down mid-to-high single digits year-over-year, with expectations for sequential pricing increases in Q2 [31][32] Question: Sustainability of Materials Group margins - Management indicated that volume increases and productivity initiatives are driving margin expansion, with a focus on balancing growth and capital efficiency [35][36] Question: Handling rising paper costs and inflation - Management expects it to take about a quarter to implement pricing adjustments in response to inflation, with visibility on materials markets remaining limited [41][42] Question: Internal indicators and market normalization - Management confirmed that the materials business is returning to normal, with destocking behind them, and apparel is also heading in the right direction [67][68]