Avery Dennison Outlook - Mixed Signals as Technical Neutrality Holds

Market Snapshot

Takeaway: Avery Dennison (AVY) is currently in a technical wait-and-see phase with a score of 5.05, indicating a neutral outlook.

News Highlights

Recent news impacting the broader market includes:

• On May 31, the Public Employees Retirement System of Ohio reduced its stake in Packaging Co. of America, indicating a shift in institutional investment behavior. While not directly linked to AVY, it reflects broader risk-off sentiment.
• EPE USA announced its commitment to sustainable packaging on May 28. As Avery Dennison is also active in the label and packaging space, this trend could indirectly boost sector sentiment over time.
• On May 31, REX Shares filed for Ethereum and Solana ETFs, potentially boosting risk-on trading behavior and benefiting AVY as an industrials stock if overall market risk appetite improves.

Analyst Views & Fundamentals

Analysts are divided on AVY’s outlook, with simple average rating of 3.80 and a performance-weighted rating of 2.43, indicating a more bearish tilt when accounting for historical accuracy. Recent ratings include Strong Buy, Buy, and Neutral, showing significant dispersion. Notably, JP Morgan (75% historical win rate) and Citigroup (66.7% win rate) stand out as more reliable voices in a mixed chorus. These ratings align with the recent price trend of a 1.48% drop, suggesting bearish momentum may persist in the near term.

On the fundamental side, here are key metrics and their internal diagnostic scores (0-10):

• Basic earnings per share (YoY growth rate): 3.92% (score: 8.89)
• Non-current assets / Total assets: 62.84% (score: 8.97)
• Net cash flow from operating activities per share (YoY growth rate): -39.37% (score: 1.24)
• Cash-UP (liquidity factor): 0.24 (score: 10.00)
• Asset-MV (market valuation): -0.35 (score: 8.68)

These mixed signals suggest that while AVY is managing liquidity well (Cash-UP at 10.00), earnings and cash flow growth are lagging, pulling down the overall fundamental score of 3.72.

Money-Flow Trends

Big money is currently cautious about AVY. The fund-flow score is 7.82, with all major investor categories (extra-large, large, medium, and small) showing negative trends. Inflows are also low, with retail investors showing 49.99% inflow ratio—marginally positive, but overwhelmed by institutional outflows. This suggests that while retail investors are slightly optimistic, large players are withdrawing, which may continue to pressure the stock in the short term.

Key Technical Signals

Avery Dennison is currently in a technical wait-and-see phase, with balanced bullish and bearish indicators over the past five days. The technical score is 5.05, pointing to neutrality.

• Ex-Dividend Date: Internal diagnostic score: 7.73 — indicates a bullish bias, historically showing 75% win rate with 1.2% average returns.
• Dividend Record Date: Internal diagnostic score: 7.73 — also shows a bullish bias with similar performance.
• WR Oversold: Internal diagnostic score: 3.16 — appears as a neutral-to-bullish signal, though not strong enough to drive a trend.
• Bearish Engulfing: Internal diagnostic score: 1.58 — a clear bearish signal, historically yielding -0.01% average returns and only 36.4% win rate.

Recent chart patterns (September 9–13, 2025):

• September 9: WR Oversold + Bearish Engulfing (mixed signals)
• September 3: WR Oversold + Ex-Dividend Date + Dividend Record Date (bullish bias)
• September 10: WR Oversold (neutral bias)

Key technical insight: “Technical indicators show that the market is in a volatile state, and the direction is not clear enough.” This suggests caution: short-term momentum is weak and inconsistent.

Conclusion

With mixed signals across technical, fundamental, and money-flow indicators, Avery Dennison remains in a holding pattern. Investors may want to wait for clearer momentum or a more decisive move before entering a position. A strong earnings report or a bullish breakout could change the equation, but for now, the internal diagnostic scores remain neutral to cautious. Consider watching the next earnings release or for a potential pull-back for entry opportunities.