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 0.2%. By the end of trading, Avery Dennison fell $0.56 (-1.3%) to $42.91 on light volume. Throughout the day, 591,295 shares of Avery Dennison exchanged hands as compared to its average daily volume of 894,200 shares. The stock ranged in price between $42.80-$43.61 after having opened the day at $43.43 as compared to the previous trading day's close of $43.47. Other companies within the Consumer Durables industry that declined today were: Nautilus Group ( NLS), down 4.0%, Stanley Furniture Company ( STLY), down 2.9%, Brunswick Corporation ( BC), down 2.9% and Manchester United PLC Class A ( MANU), down 2.3%.
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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 $4.3 billion and is part of the consumer goods sector. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are up 24.5% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Avery Dennison a buy, no analysts rate it a sell, and 3 rate it a hold.

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, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Appliance Recycling Centers Of America ( ARCI), down 10.5%, Elecsys Corporation ( ESYS), down 5.9%, Jakks Pacific ( JAKK), down 3.2% and Koss Corporation ( KOSS), down 3.2% , were all gainers within the consumer durables industry with Xerox Corporation ( XRX) 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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