Stock Analysis | Avery Dennison Outlook - A Bearish Technical Setup and Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Avery Dennison (AVY) is showing signs of technical weakness, with bearish momentum and mixed analyst views. Investors are advised to remain cautious.

News Highlights

1. Sustainable Packaging Innovations by EPE USA – EPE USA, a competitor in the packaging industry, is advancing in reusable and recyclable materials. This could heighten competitive pressures for Avery Dennison in the sustainability space.

2. Oreo Maker Sues Aldi Over Packaging Copycat Claims – Mondelez International (Oreo’s parent company) filed a lawsuit against Aldi, alleging that Aldi’s cookie packaging infringes on its designs. While not directly linked to Avery Dennison, the case highlights growing scrutiny over brand protection and packaging design in the sector.

3. Ball Announces CFO Departure – Ball Corporation, a key player in the packaging industry, announced its CFO's departure. This could signal internal turbulence, potentially affecting investor sentiment across the packaging sector, including Avery Dennison.

Analyst Views & Fundamentals

Avery Dennison has received a simple average rating of 3.80 and a performance-weighted rating of 2.43 from analysts in the past 20 days. The ratings are mixed, with 2 Neutral, 2 Buy, and 1 Strong Buy ratings. This suggests divergence in analyst expectations, with no strong consensus.

The current price trend is down by -3.46%, aligning with the weighted expectations of the market. However, the market’s overall sentiment is neutral, with no strong bullish or bearish bias.

From a fundamental perspective, here are key factors and their internal diagnostic scores (0-10):

• Shareholders’ equity / Total liabilities (%) = 34.58% with a score of 3 (internal diagnostic score).
• ROA = 2.21% with a score of 4.
• Current assets turnover ratio = 1.40x with a score of 4.
• Net profit margin (NPM) = 8.51% with a score of 4.
• Net income / Revenue = -17.93% with a score of 2.

Money-Flow Trends

Big-money investors are showing positive inflow patterns, with Large and Extra-large investors allocating more than small retail traders. The overall inflow ratio is 50.99%, indicating modest buying interest despite a recent price drop.

Small investors are also participating, but the Extra-large trend is negative, suggesting that large institutional investors may be re-evaluating their positions.

The fund-flow score is 7.72, classified as good (internal diagnostic score), but it contrasts with the bearish technical signals. This divergence suggests a mixed signal for short-term traders.

Key Technical Signals

Avery Dennison's technical indicators show clear bearish bias. The technical score is 3.72 (internal diagnostic score), with 2 bearish and 0 bullish indicators over the last 5 days.

• WR Overbought has a score of 1 (internal diagnostic score) and has historically averaged a -1.51% return with a 14.29% win rate.
• WR Oversold has a score of 6.2 and has historically averaged a 0.25% return with a 57.14% win rate.
• Bearish Engulfing has a score of 2.27 with a 0.21% average return and a 40.0% win rate.
• Marubozu White has a score of 5.43, but a -0.43% average return and a 58.33% win rate.

On August 26, 2025, WR Oversold appeared, suggesting a potential short-term reversal could be on the horizon. However, August 22 and August 15 showed WR Overbought and Bearish Engulfing, reinforcing the bearish momentum.

Key Insight: The technical side is weak, and it is suggested to avoid it. Momentum is unclear, with bearish signals dominating.

Conclusion

Avery Dennison is facing technical headwinds with bearish chart patterns and a weak technical score of 3.72 (internal diagnostic score). While big-money flows are positive, the analyst ratings are mixed and the fundamentals are moderate at best. Given the lack of clear momentum and the weak technical setup, we recommend considering waiting for a pull-back or watching for a clearer trend before entering or holding positions. For now, AVY may be best suited for cautious, risk-aware investors with a medium-term perspective.