Avery Dennison Outlook - Technical Neutrality and Divergent Analyst Ratings Amid Mixed Fundamentals

Market Snapshot

Headline Takeaway: Avery Dennison (AVY) is in a technically neutral zone with mixed signals from analysts and fundamentals showing limited strength. Overall stance: Cautious observation is advised.

News Highlights

Recent news has focused largely on broader geopolitical and economic trends, with limited direct relevance to Avery Dennison. However, a few key stories merit attention:

• China factory activity showed marginal improvement in May, rising to 49.5 (below 50 still indicates contraction), offering a potential tailwind for global manufacturing demand.
• EPE USA, a competitor in sustainable packaging, highlighted growing industry demand for eco-friendly solutions, reinforcing the long-term narrative for Avery Dennison’s sustainable product lines.
• Ukrainian conflict updates involving North Korea’s military support for Russia have increased geopolitical uncertainty, which could indirectly affect global supply chains and materials sourcing for Avery Dennison.

Analyst Views & Fundamentals

Analyst ratings are broadly mixed. The simple average rating score is 3.80, while the performance-weighted rating score is 2.43, indicating a slight bearish tilt when factoring in historical accuracy and returns.

Analyst consistency is low—five firms issued five different ratings in the last 20 days, with no clear consensus. This dispersion reflects uncertainty in Avery Dennison’s short-term trajectory.

Importantly, the current price trend (-3.66%) is in line with the weighted analyst expectations, suggesting the market has already priced in some of the bearish sentiment.

Fundamental Values and Model Scores

Below are key fundamental factors with their latest values and corresponding internal diagnostic scores (0-10):

• Operating cycle: 121.77 days (Score: 0.00 – weak liquidity management)
• Net cash flow from operating activities / Operating revenue: 4.41% (Score: 1.00 – poor cash generation relative to revenue)
• Asset-MV: -0.35 (Score: 2.00 – slightly bearish valuation signal)
• Gross profit margin: 28.85% (Score: 0.00 – margin pressure is a concern)
• Net cash flow from operating activities (YoY growth rate): -39.37% (Score: 2.00 – significant decline in cash generation)

Money-Flow Trends

Big-money flows are currently bearish, with block trend and overall trend being "negative". However, there is a split in retail and institutional behavior: medium and extra-large flows are bearish, while small and large flows are neutral or positive.

Overall, 48.70% of inflow activity is negative, pointing to a cautious mood among larger players. Investors may be waiting for clearer signals before committing to a direction.

Key Technical Signals

Technical indicators are mixed, with no strong trend emerging:

• WR Oversold has an internal diagnostic score of 3.43, indicating a weak bearish signal.
• Ex-Dividend Date has a strong bull bias with a score of 7.73, historically showing a 75% win rate and 1.2% average return.
• Dividend Record Date also shows a strong bull bias with the same score of 7.73.

Recent chart patterns from September 3 to 5, 2025 show multiple instances of WR Oversold signals, suggesting volatility and lack of clear direction.

Key technical insight: "Technical neutrality is strong, moderate attention", as long and short signals are balanced, and market changes need to be closely watched.

Conclusion

Avery Dennison is currently in a holding pattern with mixed signals from both analysts and technical indicators. Given the internal diagnostic score of 6.3 for technical analysis and divergent analyst views, consider waiting for a pull-back or clearer earnings signal before making a decision. Investors should keep an eye on upcoming cash flow and operating efficiency trends, as these could influence near-term momentum.