Stock Analysis | Avery Dennison Outlook - Navigating a Neutral Technical Landscape and Divergent Analyst Signals

Market Snapshot

Headline takeaway: Avery Dennison (AVY) is in a neutral technical phase with mixed signals, but fundamentals and analyst ratings remain cautiously balanced.

News Highlights

Recent Developments: The packaging industry is in the spotlight, with recent news including a sustainable PET bottle cap partnership between Berlin Packaging and Origin Materials, which could signal growing interest in eco-friendly packaging solutions. On the other hand, Graphic Packaging (GPK) and Packaging Corp. (PKG) both reported earnings beats in Q2, showing strength in the broader packaging sector. Investors should note that while AVY is not directly part of these events, the sector's momentum may offer indirect tailwinds.

Analyst Views & Fundamentals

Average rating score (simple mean): 3.80. Weighted rating score (performance-weighted): 2.19. This divergence suggests analysts are cautious when adjusting for historical accuracy, with Citigroup and JP Morgan standing out with better track records (66.7% and 50.0% win rates, respectively).

• Rating consistency: Analysts are divided, with 2 "Neutral" calls, 2 "Buy" ratings, and 1 "Strong Buy" within the past 20 days.
• Alignment with price trend: The stock is down 6.07% recently, matching the neutral to bearish sentiment of the weighted ratings, which suggests analysts are adjusting to the current price environment.

Key fundamental factor values and model scores:

• Total operating revenue (YoY growth rate %): -0.41% — score: 1.00 (weak growth, internal diagnostic score (0-10)).
• ROE (diluted) (%): 16.14% — score: 0.00 (weakest performer, internal diagnostic score (0-10)).
• Cash-UP: 0.61 — score: 3.00 (modest cash flow management, internal diagnostic score (0-10)).
• Current assets / Total assets (%): 37.16% — score: 4.00 (moderate liquidity, internal diagnostic score (0-10)).
• Net cash flow from operating activities / Operating revenue (%): 4.41% — score: 1.00 (weak cash flow relative to revenue, internal diagnostic score (0-10)).

Money-Flow Trends

Big-money vs. retail flows: While small retail investors are showing a positive trend, large institutional flows are negative. Specifically, large and extra-large money flows are trending downward, with inflow ratios at 50.03% and 49.18%, respectively. In contrast, small inflow ratios are at 51.01%, indicating some retail support despite the overall negative trend.

The fund flow score is 7.86 (strong, internal diagnostic score (0-10)), suggesting a generally healthy short-term environment for the stock despite the bearish institutional signals.

Key Technical Signals

Technical score: 5.34 (neutral, internal diagnostic score (0-10)). The stock is in a technical consolidation phase, with mixed signals from recent candlestick and oscillator patterns.

• Inverted Hammer: Score: 7.86 (strong bullish signal, internal diagnostic score (0-10)).
• RSI Oversold: Score: 7.23 (moderate bullish signal, internal diagnostic score (0-10)).
• WR Oversold: Score: 3.79 (weak bullish signal, internal diagnostic score (0-10)).
• Bearish Engulfing: Score: 1.87 (strong bearish signal, internal diagnostic score (0-10)).
• Marubozu White: Score: 5.97 (moderate bullish signal, internal diagnostic score (0-10)).

Recent chart patterns (by date):

• July 31, 2025: WR Oversold, Inverted Hammer, Marubozu White, RSI Oversold — mixed signals but overall bullish lean.
• August 4 and 6, 2025: WR Oversold only — suggesting possible oversold conditions.

Key insights: The market is in a neutral and sideways phase, with no strong directional bias. Traders are advised to stay on the sidelines and watch for clearer momentum signals.

Conclusion

Actionable takeaway: Given the mixed signals and neutral technical conditions, investors should consider waiting for a clearer breakout or a pullback to key support levels before committing to a position. Keep an eye on upcoming earnings reports and sector-wide developments, particularly in sustainable packaging, which may offer additional catalysts for AVY in the near term.