Trade-Ideas LLC identified

Avery Dennison

(

AVY

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Avery Dennison as such a stock due to the following factors:

  • AVY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.6 million.
  • AVY has traded 777,320 shares today.
  • AVY traded in a range 226.4% of the normal price range with a price range of $2.30.
  • AVY traded above its daily resistance level (quality: 32 days, meaning that the stock is crossing a resistance level set by the last 32 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AVY with the Ticky from Trade-Ideas. See the FREE profile for AVY NOW at Trade-Ideas

More details on AVY:

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. It operates through Pressure-Sensitive Materials, Retail Branding and Information Solutions, and Vancive Medical Technologies segments. The stock currently has a dividend yield of 2.3%. AVY has a PE ratio of 25. Currently there are 3 analysts that rate Avery Dennison a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Avery Dennison has been 749,900 shares per day over the past 30 days. Avery Dennison has a market cap of $6.5 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.09 and a short float of 5% with 6.48 days to cover. Shares are up 15.3% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Avery Dennison as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • AVERY DENNISON CORP has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AVERY DENNISON CORP increased its bottom line by earning $2.96 versus $2.59 in the prior year. This year, the market expects an improvement in earnings ($3.84 versus $2.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 24.6% when compared to the same quarter one year prior, going from $71.90 million to $89.60 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Containers & Packaging industry and the overall market on the basis of return on equity, AVERY DENNISON CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.