Core Insights - Avery Dennison Corporation (AVY) reported adjusted earnings of $2.42 per share for Q2 2025, surpassing the Zacks Consensus Estimate of $2.38, with year-over-year earnings remaining flat [1][10] - Total revenues decreased by 0.7% year over year to $2.22 billion, slightly missing the Zacks Consensus Estimate of $2.23 billion [2][10] - The company expects adjusted EPS for Q3 2025 to be between $2.24 and $2.40 [8] Financial Performance - The cost of sales increased by 0.6% year over year to $1.58 billion, leading to a gross profit decline of 3.6% to $639 million [2] - Marketing, general, and administrative expenses were reduced to $352 million from $374 million in the previous year, with adjusted operating profit around $287 million, flat compared to the prior year [3] - The adjusted operating margin remained stable at 12.9% [3] Segment Performance - Revenues in the Materials Group segment rose by 0.2% year over year to $1.55 billion, exceeding estimates, but organic sales fell by 1% [4] - The Solutions Group experienced a 2.6% revenue decline year over year to $670 million, with organic sales down by 0.8% [5] Cash and Debt Position - Avery Dennison returned $503 million to shareholders through share repurchases and dividends in the first half of 2025, repurchasing 2 million shares [6] - The company ended the quarter with cash and cash equivalents of $216 million, up from $209 million a year ago, while long-term debt increased to $2.63 billion from $2.05 billion [7] Stock Performance - Avery Dennison shares have declined by 18.7% over the past year, compared to a 6.1% decline in the industry [11]

Financial Performance - The company reported net sales of $2.2 billion [16] - Organic sales decreased by 1.0% [16, 20, 29, 33] - Adjusted EPS was $2.42, comparable to the prior year [13, 16] - Adjusted EBITDA margin increased by 20 bps to 16.6% [18] - Strong adjusted free cash flow (FCF) was $189 million [17] Segment Performance - Materials Group reported sales increased 0.2% to $1.6 billion [29] - Solutions Group reported sales decreased 2.6% to $670 million [33] - High-value categories delivered sales of approximately $1.0 billion, up low single digits (LSD) organically and up mid-single digits (MSD) excluding estimated impact of tariffs [19] - Base categories delivered sales of approximately $1.2 billion, down LSD organically [19] Outlook and Strategy - The company expects adjusted EPS of $2.24 to $2.40 in Q3 2025 [14, 42] - The company anticipates slight sales growth versus the prior year [44] - The company is targeting approximately 100% adjusted FCF conversion [44]

Net Sales- Solutions Group: $670.3 million versus the three-analyst average estimate of $678.75 million. The reported number represents a year-over-year change of -2.6%. Net Sales- Materials Group: $1.55 billion versus $1.55 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change. Adjusted Operating income (loss)- Corporate expense: $-22.8 million versus the three-analyst average estimate of $-26.36 million. Adjusted Operating income (loss)- So ...

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Avery Dennison, which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.22 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.5%. This compares to year-ago revenues of $2.24 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the re ...

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Avery Dennison reported solid second-quarter results with earnings above expectations, driven by high-value categories and productivity, despite trade policy changes [Key Highlights](index=1&type=section&id=Key%20Highlights) Avery Dennison reported solid second-quarter results with earnings above expectations, driven by high-value categories and productivity, despite trade policy changes. The company also provided its third-quarter EPS guidance 2Q25 Key Financial Highlights | Metric | Value | | :-------------------------------- | :------ | | Reported EPS | $2.41 | | Adjusted EPS (non-GAAP) | $2.42 | | Net Sales | $2.2 billion | | Organic Sales Change (non-GAAP) | (1.0%) | | **3Q25 Guidance:** | | | Reported EPS Guidance | $2.14 to $2.30 | | Adjusted EPS Guidance (non-GAAP) | $2.24 to $2.40 | - Adjusted EPS (non-GAAP) of **$2.42** was up **5% sequentially** and comparable to the prior year[5](index=5&type=chunk) - Net sales of **$2.2 billion** were down **0.7% year-over-year**[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Deon Stander highlighted a solid second quarter with earnings exceeding expectations, attributing performance to portfolio strength, growth in high-value categories, and productivity offsetting tariff impacts. He emphasized preparedness for trade policy changes and a focus on profitable growth - Delivered a solid second quarter with earnings above expectations in a dynamic environment, reflecting the strength of the overall portfolio[4](index=4&type=chunk) - Growth in high-value categories and productivity in the base business offset the impact from tariffs, despite lower sourcing demand for apparel and general retail due to trade policy changes[4](index=4&type=chunk) - The company is prepared for various scenarios regarding trade policy changes and will leverage its proven playbook to safeguard earnings and drive strong profitable growth[5](index=5&type=chunk) [About Avery Dennison](index=3&type=section&id=About%20Avery%20Dennison) Avery Dennison Corporation is a global materials science and digital identification solutions company, providing branding and information solutions across various industries worldwide, with reported sales of $8.8 billion in 2024 - Avery Dennison Corporation is a global materials science and digital identification solutions company[16](index=16&type=chunk) - The company designs and develops labeling and functional materials, RFID inlays and tags, software applications, and offerings that enhance branded packaging[16](index=16&type=chunk) - Serves industries including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals, and automotive, employing approximately **35,000 employees** in over **50 countries**[16](index=16&type=chunk) - Reported sales in **2024 were $8.8 billion**[16](index=16&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Avery Dennison's consolidated net sales decreased slightly by 0.7% to $2.2 billion in 2Q25, with organic sales down 1.0%. Reported net income increased by 6.9%, while adjusted net income saw a slight decrease. Reported EPS grew by 10.6%, and adjusted EPS remained flat year-over-year [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Avery Dennison's consolidated net sales decreased slightly by 0.7% to $2.2 billion in 2Q25, with organic sales down 1.0%. Reported net income increased by 6.9%, while adjusted net income saw a slight decrease. Reported EPS grew by 10.6%, and adjusted EPS remained flat year-over-year 2Q25 Consolidated Financial Performance (YoY) | Metric | 2Q 2025 | 2Q 2024 | % Change (Reported) | | :--------------------------------------- | :-------- | :-------- | :------------------ | | Net Sales | $2,220.5M | $2,235.3M | (0.7%) | | Organic Sales Change (non-GAAP) | (1.0%) | N/A | N/A | | Net Income (as reported) | $189.0M | $176.8M | 6.9% | | Adjusted Net Income (non-GAAP) | $189.5M | $196.0M | (3.3%) | | Reported EPS | $2.41 | $2.18 | 10.6% | | Adjusted EPS (non-GAAP) | $2.42 | $2.42 | --- | | Adjusted Operating Income (non-GAAP) | $286.7M | $288.8M | (0.7%) | | Adjusted Operating Margin (non-GAAP) | 12.9% | 12.9% | --- | | Adjusted EBITDA (non-GAAP) | $367.5M | $367.4M | --- | | Adjusted EBITDA Margin (non-GAAP) | 16.6% | 16.4% | 20 bps | [Segment Performance](index=2&type=section&id=Segment%20Performance) The Materials Group saw a slight reported sales increase but an organic decline, with high-value categories growing modestly. The Solutions Group experienced a reported and organic sales decrease, primarily due to base and apparel categories, despite growth in some high-value areas [Materials Group](index=2&type=section&id=Materials%20Group) The Materials Group reported a slight sales increase but an organic decline, with high-value categories showing modest growth and adjusted EBITDA margin decreasing slightly Materials Group 2Q25 Performance (YoY) | Metric | 2Q 2025 | 2Q 2024 | % Change (Reported) | Organic Sales Change | | :--------------------------------------- | :-------- | :-------- | :------------------ | :------------------- | | Reported Sales | $1,550.2M | $1,546.8M | 0.2% | (1.0%) | | Reported Operating Margin | 16.1% | 14.4% | 1.7 pp | N/A | | Adjusted Operating Margin (non-GAAP) | 15.6% | 15.8% | (20 bps) | N/A | | Adjusted EBITDA Margin (non-GAAP) | 17.8% | 17.9% | (10 bps) | N/A | - High-value categories, including Intelligent Labels, were up **low single digits** in total, while base categories were down **low single digits**[8](index=8&type=chunk) - Graphics and Reflectives sales were up **high single digits**; Performance Tapes and Medical sales were up **low single digits**[8](index=8&type=chunk) - Adjusted EBITDA margin decreased by **10 basis points**, as productivity benefits and higher volume/mix were offset by the net impact of pricing and raw material input costs[8](index=8&type=chunk) [Solutions Group](index=2&type=section&id=Solutions%20Group) The Solutions Group experienced reported and organic sales decreases, primarily in base and apparel categories, despite growth in some high-value areas, with adjusted EBITDA margin increasing Solutions Group 2Q25 Performance (YoY) | Metric | 2Q 2025 | 2Q 2024 | % Change (Reported) | Organic Sales Change | | :--------------------------------------- | :-------- | :-------- | :------------------ | :------------------- | | Reported Sales | $670.3M | $688.5M | (2.6%) | (0.8%) | | Reported Operating Margin | 8.9% | 9.3% | (40 bps) | N/A | | Adjusted Operating Margin (non-GAAP) | 10.0% | 10.1% | (10 bps) | N/A | | Adjusted EBITDA Margin (non-GAAP) | 17.1% | 16.8% | 30 bps | N/A | - Sales in high-value categories, including Intelligent Labels, were up **low single digits**; excluding the estimated indirect impact of tariffs, they were up **high single digits**[8](index=8&type=chunk) - Intelligent Labels were comparable to the prior year, Vestcom was up approximately **10%**, and Embelex was down **high single digits**[8](index=8&type=chunk) - Overall apparel categories were down **mid-single digits**, and sales in base categories were down **mid-single digits**[8](index=8&type=chunk) - Adjusted EBITDA margin increased by **30 basis points**, as benefits from productivity were partially offset by lower volume in apparel and growth investments[8](index=8&type=chunk) [Financial Position & Cash Flow](index=3&type=section&id=Financial%20Position%20%26%20Cash%20Flow) Avery Dennison maintains a strong balance sheet with increased total assets and a net debt to adjusted EBITDA ratio of 2.3x, while returning $503 million to shareholders in H1 2025 [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) Avery Dennison maintains a strong balance sheet, with total assets increasing year-over-year. The net debt to adjusted EBITDA ratio stood at 2.3x at the end of the second quarter - The company's balance sheet remains strong, with net debt to adjusted EBITDA (non-GAAP) at **2.3x** at the end of the second quarter[10](index=10&type=chunk)[57](index=57&type=chunk) Balance Sheet Snapshot (YoY) | Metric | Jun. 28, 2025 | Jun. 29, 2024 | | :--------------------------------------- | :-------------- | :-------------- | | Total Assets | $8,568.2M | $8,298.2M | | Total Current Assets | $3,183.8M | $2,967.8M | | Total Current Liabilities | $3,062.1M | $3,300.2M | | Long-term debt and finance leases | $2,628.2M | $2,046.5M | [Cash Flow & Capital Deployment](index=3&type=section&id=Cash%20Flow%20%26%20Capital%20Deployment) In the first half of 2025, Avery Dennison returned $503 million to shareholders through share repurchases and dividends, including a 7% increase in the quarterly dividend. Operating cash flow decreased, while adjusted free cash flow for 2Q25 improved year-over-year - Returned **$503 million** in cash to shareholders during the first half of 2025 through share repurchases and dividends[9](index=9&type=chunk) - Repurchased **2.0 million shares** at an aggregate cost of **$360 million** in the first half of the year[9](index=9&type=chunk) - Increased its quarterly dividend to **$0.94 per share**, representing an increase of approximately **7%** over the previous rate[9](index=9&type=chunk) Cash Flow Highlights (Six Months Ended) | Metric | Jun. 28, 2025 | Jun. 29, 2024 | | :--------------------------------------- | :-------------- | :-------------- | | Net cash provided by operating activities | $192.5M | $317.5M | | Net cash used in investing activities | ($61.2M) | ($118.8M) | | Net cash used in financing activities | ($248.5M) | ($202.1M) | | Adjusted free cash flow (non-GAAP) (2Q) | $188.9M | $142.5M | [Outlook & Guidance](index=1&type=section&id=Outlook%20%26%20Guidance) Avery Dennison has issued its earnings per share guidance for the third quarter of 2025, providing both reported and adjusted figures [Third Quarter 2025 Guidance](index=1&type=section&id=Third%20Quarter%202025%20Guidance) Avery Dennison has issued its earnings per share guidance for the third quarter of 2025, providing both reported and adjusted figures 3Q25 EPS Guidance | Metric | Range | | :--------------------------------------- | :------------ | | Reported EPS Guidance | $2.14 to $2.30 | | Adjusted EPS Guidance (non-GAAP) | $2.24 to $2.40 | - The adjusted EPS guidance excludes an estimated **~$0.10 per share** impact of restructuring charges and other items[14](index=14&type=chunk) [Other Financial Information](index=3&type=section&id=Other%20Financial%20Information) This section details Avery Dennison's income tax rates, cost reduction actions, and the reconciliation of non-GAAP financial measures to GAAP results [Income Taxes](index=3&type=section&id=Income%20Taxes) The company's reported and adjusted effective tax rates for the second quarter of 2025 were both 26.0% - The reported effective tax rate for the second quarter was **26.0%**[11](index=11&type=chunk) - The adjusted tax rate (non-GAAP) for the quarter was also **26.0%**[11](index=11&type=chunk) [Cost Reduction Actions](index=3&type=section&id=Cost%20Reduction%20Actions) Avery Dennison realized pre-tax savings from restructuring efforts in the first half of 2025, while also incurring associated restructuring charges - Realized approximately **$30 million** in pre-tax savings from restructuring, net of transition costs, in the first half of 2025[12](index=12&type=chunk) - Incurred approximately **$13 million** in pre-tax restructuring charges in the first half of 2025[12](index=12&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Avery Dennison provides non-GAAP financial measures to supplement GAAP results, aiding investors in evaluating underlying performance and comparing results. These measures exclude specific events or activities to offer a clearer view of core operations and liquidity - Non-GAAP financial measures are used to evaluate trends in underlying performance and facilitate comparisons with competitors, supplementing GAAP results[33](index=33&type=chunk) - These measures exclude the impact of certain events, activities, or strategic decisions such as restructuring charges, legal matters, strategic transactions, and currency adjustments, to provide meaningful supplemental information on core operating results and liquidity[34](index=34&type=chunk) - Key non-GAAP measures include Sales change ex. currency, Organic sales change, Adjusted operating income/margin, Adjusted EBITDA/margin, Adjusted tax rate, Adjusted net income/EPS, Net debt to adjusted EBITDA ratio, and Adjusted free cash flow, with detailed reconciliations provided[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Legal & Disclosures](index=4&type=section&id=Legal%20%26%20Disclosures) This section includes a 'Safe Harbor' statement for forward-looking statements and outlines significant risk factors impacting the company's financial performance [Safe Harbor Statement & Risk Factors](index=4&type=section&id=Safe%20Harbor%20Statement%20%26%20Risk%20Factors) The document includes a 'Safe Harbor' statement for forward-looking statements, outlining significant risk factors that could materially affect the company's financial performance, such as global economic conditions, competition, raw material costs, and foreign currency fluctuations - Certain statements are 'forward-looking statements' subject to risks and uncertainties, qualifying for the safe harbor from liability[17](index=17&type=chunk) - Significant risk factors include the impact of global economic conditions, tariffs, geopolitical uncertainty, and changes in environmental standards on demand[18](index=18&type=chunk) - Other key risks involve competitors' actions, the cost and availability of raw materials, the ability to offset higher costs, foreign currency fluctuations, and the execution and integration of acquisitions[18](index=18&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Avery Dennison's preliminary condensed consolidated statements of income, balance sheets, and cash flows for the specified periods [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the preliminary condensed consolidated statements of income for the three and six months ended June 28, 2025, and June 29, 2024, detailing revenues, expenses, and net income Preliminary Condensed Consolidated Statements of Income (In millions, except per share amounts) | Metric | Three Months Ended Jun. 28, 2025 | Three Months Ended Jun. 29, 2024 | Six Months Ended Jun. 28, 2025 | Six Months Ended Jun. 29, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $2,220.5 | $2,235.3 | $4,368.8 | $4,386.6 | | Cost of products sold | 1,581.4 | 1,572.6 | 3,108.2 | 3,091.7 | | Gross profit | 639.1 | 662.7 | 1,260.6 | 1,294.9 | | Marketing, general and administrative expense | 352.4 | 373.9 | 699.4 | 739.1 | | Income before taxes | 255.5 | 238.4 | 482.5 | 472.8 | | Provision for income taxes | 66.5 | 61.6 | 127.2 | 123.6 | | Net income | $189.0 | $176.8 | $355.3 | $349.2 | | Net income per common share, assuming dilution | $2.41 | $2.18 | $4.50 | $4.31 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the preliminary condensed consolidated balance sheets as of June 28, 2025, and June 29, 2024, detailing the company's assets, liabilities, and shareholders' equity Preliminary Condensed Consolidated Balance Sheets (In millions) | ASSETS | Jun. 28, 2025 | Jun. 29, 2024 | | :-------------------------------------------------- | :-------------- | :-------------- | | Cash and cash equivalents | $215.9 | $208.8 | | Trade accounts receivable, net | 1,626.5 | 1,528.6 | | Inventories | 1,026.9 | 979.9 | | Total current assets | 3,183.8 | 2,967.8 | | Property, plant and equipment, net | 1,604.2 | 1,590.0 | | Goodwill and other intangibles resulting from business acquisitions, net | 2,744.6 | 2,790.7 | | Total assets | $8,568.2 | $8,298.2 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Short-term borrowings and current portion of long-term debt and finance leases | $922.0 | $1,172.3 | | Accounts payable | 1,307.5 | 1,313.4 | | Total current liabilities | 3,062.1 | 3,300.2 | | Long-term debt and finance leases | 2,628.2 | 2,046.5 | | Total liabilities and shareholders' equity | $8,568.2 | $8,298.2 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the preliminary condensed consolidated statements of cash flows for the six months ended June 28, 2025, and June 29, 2024, outlining cash generated from or used in operating, investing, and financing activities Preliminary Condensed Consolidated Statements of Cash Flows (In millions) | Metric | Six Months Ended Jun. 28, 2025 | Six Months Ended Jun. 29, 2024 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $192.5 | $317.5 | | Net cash used in investing activities | ($61.2) | ($118.8) | | Net cash used in financing activities | ($248.5) | ($202.1) | | Increase (decrease) in cash and cash equivalents | ($113.2) | ($6.2) | | Cash and cash equivalents, end of period | $215.9 | $208.8 |

Core Insights - Analysts expect Avery Dennison (AVY) to report quarterly earnings of $2.38 per share, reflecting a year-over-year decline of 1.7% [1] - Projected revenues for the quarter are $2.23 billion, down 0.2% from the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1] Earnings Estimates and Revisions - Changes in earnings estimates are crucial for predicting investor reactions to the stock [2] - Empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Forecast - The consensus estimate for 'Net Sales- Solutions Group' is $678.75 million, indicating a decline of 1.4% year-over-year [4] - Analysts project 'Net Sales- Materials Group' to reach $1.55 billion, suggesting a year-over-year increase of 0.5% [4] - The 'Adjusted Operating income (loss)- Solutions Group' is expected to be $67.09 million, down from $69.80 million in the same quarter last year [5] - The consensus for 'Adjusted Operating income (loss)- Materials Group' is $242.79 million, compared to $244.50 million a year ago [5] Stock Performance - Over the past month, Avery Dennison shares have returned +1.8%, while the Zacks S&P 500 composite has increased by +5.4% [5] - Avery Dennison holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [5]

Core Viewpoint - Avery Dennison Corporation (AVY) is expected to report second-quarter 2025 results on July 22, 2025, with a consensus revenue estimate of $2.23 billion, reflecting a 0.2% decrease from the previous year [1] Financial Performance - The consensus estimate for AVY's earnings per share (EPS) is $2.38, indicating a year-over-year decline of 1.6% [2] - AVY has a history of beating earnings estimates, achieving this in three of the last four quarters, with an average surprise of 1.9% [2][3] Segment Performance - The Materials Group segment is projected to see a revenue decline of 0.3% year-over-year to $1.54 billion, with adjusted operating profit expected to fall by 0.8% to $242 million [9] - The Solutions Group segment's revenues are estimated to decrease by 0.9% to $682 million, with an operating profit decline of 0.7% to $69 million [10][11] Market Context - AVY shares have decreased by 19% over the past year, contrasting with a 5% decline in the industry [12]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Avery Dennison (AVY) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Avery Dennison is expected to report quarterly earnings of $2.38 per share, reflecting a -1.7% change year-over-year, with revenues projected at $2.23 billion, down 0.2% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.25% over the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Avery Dennison is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.42%, suggesting a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Avery Dennison was expected to post earnings of $2.32 per share but delivered $2.30, resulting in a surprise of -0.86% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Avery Dennison does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [17].

Company Overview - Avery Dennison Corporation (NYSE: AVY) specializes in producing and selling labeling and packaging materials, including tags, adhesives, and labels [1] - The company operates through two segments: Materials Group and Solutions Group [1] - Avery Dennison has a market capitalization of approximately $5.75 billion [1] Analyst Background - The analyst has over 10 years of experience in the investment arena, starting as an analyst and progressing to a management role [1] - The analyst holds a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting [1] - Dividend investing is a personal interest of the analyst, who aims to share insights with the Seeking Alpha community [1]

Core Viewpoint - Investors in the Containers - Paper and Packaging sector should consider Amcor (AMCR) and Avery Dennison (AVY) for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Estimates - Amcor has a Zacks Rank of 2 (Buy), indicating strong earnings estimate revision trends, while Avery Dennison has a Zacks Rank of 4 (Sell) [3] - The earnings estimate revision activity for AMCR is more impressive, suggesting a better analyst outlook compared to AVY [3] Group 2: Value Metrics - Amcor's forward P/E ratio is 11.41, significantly lower than Avery Dennison's forward P/E of 18.95 [5] - Amcor has a PEG ratio of 2.29, while Avery Dennison's PEG ratio is 2.90, indicating that AMCR may be more attractive in terms of expected earnings growth [5] - Amcor's P/B ratio is 3.55, compared to Avery Dennison's P/B of 6.52, further highlighting AMCR's relative undervaluation [6] - Based on these valuation metrics, Amcor holds a Value grade of B, while Avery Dennison has a Value grade of C, suggesting that AMCR is the more favorable option for value investors [6]