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AMCR or AVY: Which Is the Better Value Stock Right Now?
ZACKSยท2025-07-02 16:41

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]