Comparing Avery Dennison's Stock Performance with Other Discretionary Stocks: An Analysis
In the world of packaging companies, Avery Dennison Corporation (AVY) has experienced a challenging year, with its stock underperforming its peer, Ball Corporation. While Ball Corporation saw a decline of 10.8% in 2025, AVY only managed a slight improvement, with a 11.8% decline on a year-to-date basis.
Over the past year, AVY's stock has remained below its 50-day and 200-day moving averages, indicating a bearish trend. This trend continued over the past three months, with a 5.1% decline in AVY's stock price. The Consumer Discretionary Select Sector SPDR Fund (XLY), on the other hand, has surged 14.3% over the same period, outperforming AVY.
Demand from apparel and general retail categories has been under pressure due to the current administration's tariff policies. However, growth in Avery Dennison's high-value categories has mostly offset this pressure.
On July 22, AVY released its mixed Q2 results, with net sales coming in at $2.2 billion, down 66 basis points year-over-year and missing the Street's expectations. However, the company's adjusted EPS remained flat at $2.42 and surpassed the consensus estimates by 1.7%. As a result, AVY's stock prices gained 1.5% in the trading session following the results' release.
Despite the challenges, AVY's stock has a mean price target of $199.50, suggesting a 20.9% upside potential from current price levels. The consensus rating among the 13 analysts covering the AVY stock is a "Moderate Buy." Notable institutions giving this rating include Bank of America, Raymond James Financial, BMO Capital Markets, and Citigroup, among others. Bank of America and Raymond James, for example, have issued "buy" and "outperform" ratings with price targets raised to $208 and $200 respectively.
Avery Dennison Corporation operates in the Americas, EMEA, and Indo-Pacific, making it a large-cap stock with a market cap of $12.9 billion. Despite its underperformance in 2025, AVY slightly outperformed Ball Corporation's 26% plunge over the past 52 weeks.
In conclusion, while Avery Dennison Corporation's stock has faced challenges in 2025, the company's high-value categories have helped to offset pressure from apparel and general retail categories. With a mean price target of $199.50 and a "Moderate Buy" consensus rating, investors may still find opportunities in AVY's stock.
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