Stock Analysis | Avery Dennison Outlook - Mixed Signals and Weak Technicals for AVY

Market Snapshot
Headline Takeaway: Avery Dennison (AVY) is showing weak technical indicators, with more bearish signals than bullish ones, and the stock price has fallen by 7.88% recently. Investors are advised to proceed with caution.

News Highlights
  
Jefferies Financial Group Inc. Purchases New Shares in Packaging Corporation of America: While this news is about a different company, it highlights strong institutional interest in the packaging sector, which may indirectly affect Avery Dennison due to competitive pressures or industry trends.
  
Trans Freight Containers standalone net profit rises 16.13% in the June 2025 quarter: This indicates that some logistics and packaging companies are performing well, suggesting a mixed outlook for the sector. However, Avery Dennison has not seen similar gains, and its net profit appears stagnant or declining.
  
Stock Analysis | Packaging Corporation Of America Outlook - Weak Technicals and Mixed Analyst Sentiment: This report further reinforces the idea that the packaging sector is facing technical challenges. While not directly about Avery Dennison, it signals a broader market concern that may affect AVY.

Analyst Views & Fundamentals
Avery Dennison is receiving mixed signals from analysts. The average rating score (simple mean) stands at 3.80, while the performance-weighted rating score is 2.19. This suggests that while analysts are generally neutral, the market is skeptical due to the historical performance of those analysts.

There is also a lack of consensus among analysts, with recent ratings ranging from "Strong Buy" to "Neutral." This rating dispersion reflects uncertainty about the company’s short-term prospects.

Analysts’ views appear to align with the recent price trend of a 7.88% drop in AVY’s stock price. This downward move may reflect concerns about the company's fundamentals, such as its operating revenue growth (-0.41%) and return on total assets (6.45%).

Key fundamental factors include:
  
Operating cycle: 121.77 days – internal diagnostic score: 0.00
  
EV/EBIT: 32.36 – internal diagnostic score: 2.00
  
Rate of return on total assets: 6.45% – internal diagnostic score: 3.00
  
Income tax / Total profit: 26.36% – internal diagnostic score: 3.00
  
Cash-UP: 0.62 – internal diagnostic score: 3.00
  
Annualized return on total assets: 12.90% – internal diagnostic score: 3.00
  
Operating revenue (YoY growth rate): -0.41% – internal diagnostic score: 2.00
  
Equity multiplier: 3.76 – internal diagnostic score: 0.00
  
Current assets / Total assets: 37.16% – internal diagnostic score: 3.00

Money-Flow Trends
Avery Dennison is experiencing mixed money-flow patterns. While small investors are showing a positive trend, large and extra-large investors are trending negative, which could signal a lack of confidence among institutional players.

Overall, the inflow ratio is 49.42%, indicating that slightly less than half of the trading volume is associated with inflows. The block inflow ratio is 49.44%, also close to the 50% mark, suggesting no strong directional bias from large players.

The fund flow score is 7.82 (internal diagnostic score), which is considered good, but this must be weighed against the technical and fundamental weaknesses observed in the stock.

Key Technical Signals
Avery Dennison’s technical indicators are mixed, with more bearish signals than bullish ones. Here are some key indicators and their internal diagnostic scores (0-10):
  
Inverted Hammer: 7.93 – a strong bullish candlestick pattern.
  
Dividend Announcement Date: 1.00 – a weak signal that historically leads to negative returns.
  
Bullish Engulfing: 2.58 – a mixed signal with a low win rate.
  
Marubozu White: 5.42 – a neutral to slightly bullish pattern.

Looking at the recent indicators by date, we see:
  
July 31: WR Oversold, RSI Oversold, Inverted Hammer, and Marubozu White – suggesting some potential for a bounce but with mixed momentum.
  
July 24: Dividend Announcement Date – a negative signal with an internal score of 1.00.

Overall, the key technical insights indicate a weak trend with unclear direction. The stock is in a consolidation phase with more bearish indicators than bullish ones, suggesting caution for new entrants.

Conclusion
Given the mixed analyst views, weak technical indicators, and downward price trend, we recommend caution for new investors. The stock appears to be in a consolidation phase, with no clear momentum in either direction.

Actionable Takeaway: Consider waiting for a clearer breakout or monitoring the next earnings report for a potential catalyst. Until then, it may be wise to avoid entering new long positions in AVY.