$202.59
arrow_drop_up1.54%Is AVY a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Avery Dennison Corp, some of the key indicators to consider include its price-to-earnings (P/E) ratio, which currently stands at 34.86. This indicates that investors are willing to pay $34.86 for every dollar of earnings generated by the company. Another important metric is the dividend yield of 1.5%, which shows the percentage return investors can expect to receive from dividends relative to the current stock price. Additionally, the company's return on equity (ROE) of 24.18% highlights its ability to generate profits from shareholders' equity, with a higher ROE typically viewed favorably by investors. Furthermore, the company's earnings growth forecast of 0.19% suggests a modest but positive outlook for future profitability. It is also essential to consider the debt-to-equity ratio of 1.62, which indicates the company's financial leverage and how much debt it has compared to shareholders' equity. A lower ratio is typically preferred as it signifies less financial risk. Overall, these fundamental indicators provide valuable insights into Avery Dennison Corp's financial health and performance, helping investors make informed decisions about the company's stock.
Positive Development
Avery Dennison's stock outperformed competitors despite losses on the day. This indicates the company's resilience and strength in the face of adversity. The company appointed Maria Fernanda Mejia to its Board of Directors, which could potentially bring in new perspectives and expertise to the company's management. Avery Dennison's stock increased by 8.6% since its last earnings report, which shows a positive trend in the company's performance.
Negative Development
Despite its overall positive performance, Avery Dennison's stock underperformed on some days, which could indicate potential weakness in the company's stock. The company's long-term debt-to-total-capital ratio is quite high, which could indicate financial instability. The company's payout ratio is quite high, which could suggest that the company is paying out a significant portion of its earnings in dividends, potentially impacting its ability to reinvest in the business.
Technical Analysis
Avery Dennison Corp (AVY) has a technical rating of NEUTRAL, with a price of $216.13. The stock has shown a price change of -0.27% and a seven-day price change of 0.85%. The company's technical indicators for the month include one buy indicator (ATR) and four hold indicators (RSI, MACD, ADX, and ROC), as well as three sell indicators (CCI, WILLR, and STOCHRSI). The stock's technical analysis also includes a beta value of 0.9, indicating that it is less volatile compared to the overall market. Additionally, Avery Dennison Corp has a market score of 62 and a market growth score of 76, suggesting potential for growth in the future. The company's technical analysis also highlights its fifty-two-week high price of $219.57 and fifty-two-week low price of $158.93. The stock sector is classified as Consumer Cyclical, with a positive sector score of 63. Overall, Avery Dennison Corp's technical analysis provides insight into its current price performance, volatility, and potential for future growth in the market.
Conclusion and recommendation
Based on the data provided for Avery Dennison Corp, it appears to be a solid investment option with a neutral analyst recommendation. The company has a strong financial position, with a market cap of $17.4 billion and a dividend yield of 1.5%. Additionally, Avery Dennison Corp has shown consistent growth with positive price change percentages over various periods, such as one month, three months, six months, and year-to-date. The company's return on equity of 24.18% and return on assets of 7.7% indicate efficient use of financial resources. In conclusion, Avery Dennison Corp presents a stable investment opportunity for those seeking long-term growth potential. The company's strong financial performance, including a healthy dividend yield, positive price change percentages, and solid return metrics, make it an attractive option for investors. Additionally, with a neutral analyst recommendation, Avery Dennison Corp is seen as a reliable and stable choice within the consumer cyclical sector. Overall, the company's consistent growth and strong financial position make it a promising investment option for those looking for stability and potential returns in the stock market.