Avery Dennison Corp (AVY): Today's Featured Consumer Durables Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Avery Dennison ( AVY) pushed the Consumer Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Avery Dennison fell $0.70 (-1.7%) to $41.55 on average volume. Throughout the day, 1,075,542 shares of Avery Dennison exchanged hands as compared to its average daily volume of 972,900 shares. The stock ranged in price between $41.38-$42.52 after having opened the day at $42.52 as compared to the previous trading day's close of $42.25. Other companies within the Consumer Durables industry that declined today were: Chromcraft Revington ( CRC), down 6.6%, Escalade ( ESCA), down 5.0%, Virco Manufacturing Corporation ( VIRC), down 3.8% and Whirlpool Corporation ( WHR), down 1.6%.
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Avery Dennison Corporation engages in the production and sale of pressure-sensitive materials worldwide. Its Pressure-sensitive Materials segment offers pressure-sensitive label and packaging materials, graphics and graphic films, reflective products, and tapes and performance polymers. Avery Dennison has a market cap of $4.1 billion and is part of the consumer goods sector. The company has a P/E ratio of 25.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Avery Dennison as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Jarden Corporation ( JAH), down 6.6%, Jakks Pacific ( JAKK), down 6.5%, Elecsys Corporation ( ESYS), down 6.0% and Brunswick Corporation ( BC), down 5.9% , were all gainers within the consumer durables industry with Mattel ( MAT) being today's featured consumer durables industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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