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Mentor, Ohio-based Avery Dennison Corporation (AVY) provides materials science and digital identification solutions. Valued at $15 billion by market cap, the company provides a wide range of branding and information solutions. Its products and solutions include pressure-sensitive materials such as papers, plastic films, and metal foils, as well as radio frequency identification (RFID) inlays, tickets, tags, labels, and other converted products.
Shares of this packaging giant have underperformed the broader market over the past year. AVY has declined 13.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, AVY stock is down marginally, compared to SPX’s 1.3% rise on a YTD basis.
Narrowing the focus, AVY’s underperformance is also apparent compared to the Consumer Discretionary Select Sector SPDR Fund (XLY). The exchange-traded fund has gained about 19.4% over the past year. However, AVY’s marginal losses on a YTD basis outshine the ETF’s 3.5% dip over the same time frame.
On Jan. 30, AVY shares closed down more than 5% after reporting its Q4 results. Its adjusted EPS of $2.38 surpassed Wall Street expectations of $2.37. The company’s revenue was $2.19 billion, falling short of Wall Street forecasts of $2.20 billion. AVY expects full-year adjusted EPS to be between $9.80 and $10.20.
For fiscal 2025, ending in December, analysts expect AVY’s EPS to grow 5.6% to $9.96 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 12 analysts covering AVY stock, the consensus is a “Strong Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is more bullish than a month ago, with an overall “Moderate Buy” rating, consisting of seven analysts suggesting a “Strong Buy.”
On Feb. 12, Barclays PLC (BCS) analyst Michael Leithead maintained a “Buy” rating on AVY with a price target of $225, implying a potential upside of 20.7% from current levels.
The mean price target of $219.25 represents a 17.6% premium to AVY’s current price levels. The Street-high price target of $245 suggests an ambitious upside potential of 31.5%.
