Avery Dennison (AVY) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging. Avery Dennison (AVY) is highlighted as a promising growth stock with a favorable Growth Score and a strong Zacks Rank [1][6]. Group 1: Earnings Growth - Historical EPS growth rate for Avery Dennison is 6.2%, but projected EPS growth for this year is 19.7%, significantly outperforming the industry average of 3.1% [3]. Group 2: Asset Utilization Ratio - Avery Dennison has an asset utilization ratio (sales-to-total-assets ratio) of 1.05, indicating that the company generates $1.05 in sales for every dollar in assets, compared to the industry average of 0.85. Additionally, sales are expected to grow by 5.1% this year, while the industry average is 0% [4]. Group 3: Earnings Estimate Revisions - Current-year earnings estimates for Avery Dennison have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month, indicating a positive trend in earnings estimate revisions [5]. Group 4: Overall Positioning - Avery Dennison has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning the company well for potential outperformance in the growth stock category [6].