Avery Dennison (AVY) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - Avery Dennison (AVY) has experienced a bearish trend with a 6.8% stock price decline over the past four weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1] Group 1: Technical Analysis - The hammer chart pattern indicates a possible bottom formation, suggesting that selling pressure may be exhausting [1] - A hammer pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near its opening price, signaling a potential loss of control by bears [2] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [2] Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for AVY serve as a bullish indicator, correlating strongly with near-term stock price movements [3] - The consensus EPS estimate for the current year has increased by 0.1% over the last 30 days, indicating analysts' agreement on improved earnings potential [3] - Avery Dennison holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3]