Avery Dennison earns an excellent 31% ROE with 131% cash conversion and a 2.2% dividend yield, but growth is modest and the price of $182.22 sits 3.2% above the $176.35 analyst target. Overbought momentum (RSI 77) and no moat make the setup unattractive for new money.
Thesis pillars
- Dividend Aristocrat Income↓Deteriorating
- High Returns Strong Cash Conversion→Stable
- Price Above Analyst Target→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Nov 1, 2026, based on the 10-K filed Feb 25, 2026
Avery Dennison Corporation (AVY) Stock Analysis
Consumer Cyclical · Packaging & Containers
Sell if holding. Analyst target reached at $185.38 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international operations (outside U.S.) (69.0%).
Avery Dennison designs and manufactures pressure-sensitive label materials, RFID solutions, and performance tapes through its Materials Group (69% of net sales) and Solutions Group (31%), selling to converters and apparel brands across 50+ countries. In 2025, approximately 69%... Read more
Sell if holding. Analyst target reached at $185.38 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international operations (outside U.S.) (69.0%). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, high confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 91d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Avery Dennison Corporation
About Avery Dennison Corporation
Avery Dennison split its 2025 net sales between the Materials Group (69% of total) and Solutions Group (31%), operating over 200 manufacturing and distribution facilities across more than 50 countries and employing roughly 35,000 people at year-end. International operations represented 69% of net sales, with approximately 40% from emerging markets in Latin America, Eastern Europe, the Middle East, and Asia Pacific. In 2025, the company acquired Taylor Adhesives for approximately $390 million, adding a Georgia-based flooring adhesives business.
The Materials Group generates revenue by manufacturing Fasson, JAC, and Avery Dennison-branded pressure-sensitive materials sold through converter channels to food, beverage, pharmaceutical, and logistics packagers, along with graphics, reflective films, and performance tapes for automotive, electronics, and construction customers. Input costs — paper, plastic films, resins, and specialty chemicals — have historically been volatile, with the company implementing targeted price increases during inflationary periods and passing through deflation-related reductions when input costs declined. The Solutions Group sells RFID inlays and tags, external embellishments, Vestcom-brand shelf-edge solutions, and brand protection services to apparel, food, and logistics customers. Tariff-related uncertainty caused apparel category sales to decline within Solutions Group in 2025, with the company estimating that indirect tariff effects reduced overall apparel category sales by a low single digit rate across the second, third, and fourth quarters. Competitors in label materials include UPM Adhesive Materials, Fedrigoni Self-Adhesives, and Lintec Corporation; 3M competes in graphics, reflective products, and performance tapes.
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The most concrete near-term demand signal disclosed for 2025 is the low single digit rate decline in apparel category sales from indirect tariff effects. This risk runs in both directions: direct input cost inflation if tariffs affect imported raw materials, and demand softness if customers reduce order volumes. A February 2026 U.S. Supreme Court decision held that IEEPA does not authorize tariff imposition, which may reduce some specific duties but is likely to produce a period of trade policy instability affecting the company's international supply chains and customer demand across apparel and logistics end markets.
See also: Consumer Cyclical · Packaging & Containers
From Avery Dennison Corporation's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated Oct 28, 2026Recent Developments — Avery Dennison Corporation
Latest news
- NEWS What to expect from Avery Dennison’s (AVY) Q3 earnings - Yahoo Finance — Yahoo Finance Oct 28, 2026 neutral
- NEWS What to expect from Avery Dennison’s (AVY) Q3 earnings - StockStory — StockStory Oct 28, 2026 neutral
- NEWS What to expect from Avery Dennison’s (AVY) Q3 earnings - TradingView — TradingView Oct 28, 2026 neutral
- NEWS Avery Dennison Corporation Hasn't Earned An Upgrade Yet (NYSE:AVY) - Seeking Alpha — Seeking Alpha Oct 27, 2026 neutral
- NEWS What Avery Dennison Stock's Lowered Earnings Outlook Means For Shareholders - Simply Wall Street — Simply Wall Street Oct 24, 2026 negative
Latest item Oct 28, 2026 · Generated 2026-11-04T11:49:36Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicinternational operations (outside U.S.)69%10-K Item 1A: 'approximately 69% of our net sales originated outside the U.S.'
- MEDIUMGeographicemerging markets40%10-K Item 1A: 'Approximately 40% of our net sales in 2025 originated in emerging markets.'
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02MEDIUMRyan D. Yost, President of Materials Group, resigned effective June 12, 2026, to accept another opportunity. Danny G. Allouche appointed successor as President, Materials Group, effective June 1, 2026.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $185.38 — A.R:R is negative (-0.4) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international operations (outside U.S.) (69.0%). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $176.78. Score 5.6/10, high confidence.
Analyst target $176.87 reached (−4.6% from $185.38); no take-profit level is published. Prior stop was $176.78. Stop-loss: $176.78.
Concentration risk — Geographic: international operations (outside U.S.) (69.0%); Analyst target reached - limited upside remaining; Sector modifier (Consumer Cyclical): -1.5.
Avery Dennison Corporation trades at a P/E of 20.1 (forward 16.7). TrendMatrix value score: 5.7/10. Verdict: Sell.
17 analysts rate AVY, with a consensus score of 3.9/5. 10 analysts publish price targets averaging $203.
What does Avery Dennison Corporation do?Avery Dennison designs and manufactures pressure-sensitive label materials, RFID solutions, and performance tapes...
Avery Dennison designs and manufactures pressure-sensitive label materials, RFID solutions, and performance tapes through its Materials Group (69% of net sales) and Solutions Group (31%), selling to converters and apparel brands across 50+ countries. In 2025, approximately 69% of net sales came from international operations, with about 40% from emerging markets.