Stock Analysis | Avery Dennison Outlook - Technical Neutrality and Mixed Analyst Signals

1. Market Snapshot

Headline Takeaway: Avery Dennison is in a technically neutral position with mixed analyst signals, but shows strong money inflows.

The stock is currently in a state of technical neutrality, showing a 3.71% price rise, while analysts remain divided in their expectations. Our internal diagnostic score for technical conditions is 6.14, and the stock is receiving positive money flows across all categories.

2. News Highlights

Recent Developments: Several news items may have indirect impacts on Avery Dennison’s market perception:

• Oreo Maker Mondelez Files Lawsuit Against Aldi – While not directly related to Avery Dennison, this legal action between major food brands may highlight ongoing industry challenges around packaging and branding, areas where Avery Dennison operates.
• EPE USA Advances in Sustainable Packaging – The focus on reusable and recyclable materials could influence the broader packaging industry, possibly benefiting Avery Dennison’s market position in long-term sustainability trends.
• Ball Corporation Announces CFO Departure – Although unrelated in direct business terms, this highlights volatility in packaging industry leadership and may indirectly affect investor sentiment towards similar firms.

3. Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 3.80

Weighted Rating Score (Performance-Weighted): 2.43

Analysts remain divergent in their views, with five institutions issuing five total ratings across the categories of "Underperform," "Strong Buy," and "Neutral." The mismatch between this moderately bearish sentiment and the recent 3.71% price rise suggests investors may be operating on separate signals from the analyst community.

Fundamental Factor Analysis:

• Shareholders’ Equity / Total Liabilities: 34.58% (internal diagnostic score: 2.00)
• Operating Cycle: 121.77 days (internal diagnostic score: 0.00)
• Gross Profit Margin: 28.85% (internal diagnostic score: 0.00)
• Net Income to Revenue Ratio: -18.15% (internal diagnostic score: 1.00)
• GMAR: 28.78% (internal diagnostic score: 1.00)
• Rate of Return on Total Assets: 6.45% (internal diagnostic score: 3.00)
• Current Assets Turnover Ratio: 1.40 (internal diagnostic score: 3.00)
• Annualized Return on Total Assets: 12.90% (internal diagnostic score: 3.00)
• Annualized Net Profit Margin on Total Assets: 8.37% (internal diagnostic score: 4.00)
• Operating Revenue YoY Growth Rate: -0.41% (internal diagnostic score: 2.00)

While some metrics like the annualized net profit margin and return on total assets are positive, key indicators such as the operating cycle and net income to revenue ratio suggest room for improvement. The overall internal diagnostic score for fundamentals is 6.21.

4. Money-Flow Trends

Big Money vs. Retail: Avery Dennison is currently receiving strong inflows from both institutional and retail investors. Across all categories:

• Small Investors: 51.51% inflow ratio
• Medium Investors: 50.05% inflow ratio
• Large Investors: 50.92% inflow ratio
• Extra-Large Investors: 50.75% inflow ratio

The overall inflow ratio is 50.75% with a money-flow score of 7.98, labeled as “good.” This suggests both institutional and retail investors are showing confidence in the stock at the moment.

5. Key Technical Signals

Recent Chart Patterns: Over the last five days, several key technical indicators emerged:

• WR Oversold (internal diagnostic score: 6.20) – Appears multiple times and is seen as a neutral rise signal.
• Bearish Engulfing (internal diagnostic score: 2.98) – A bearish pattern observed on 2025-08-06, suggesting neutral bias.
• Inverted Hammer (internal diagnostic score: 7.86) – A bullish reversal pattern on 2025-07-31.
• RSI Oversold (internal diagnostic score: 7.69) – Seen as a sign of potential rebound.

Key Insights: The technical conditions are currently in a moderate attention state, with technical neutrality strong. The market is in a volatile state, and the direction is not yet clear. Investors are advised to pay close attention to market changes and to monitor both bullish and bearish signals as they balance.

6. Conclusion

Actionable Takeaway: Given the mixed analyst views, moderate technical neutrality, and strong money inflows, investors may want to consider waiting for a pull-back or clearer trend formation before committing to a position in Avery Dennison.

The stock has internal diagnostic scores of 6.14 (technical), 6.21 (fundamental), and 7.98 (money flow), indicating a moderate confidence level. However, the divergence between analyst expectations and price action suggests a watchful approach is warranted. Investors should closely monitor the RSI Oversold and Inverted Hammer signals for potential turning points.