U.S. markets open in 4 hours 13 minutes
  • S&P Futures

    4,153.50
    -2.00 (-0.05%)
     
  • Dow Futures

    33,913.00
    -45.00 (-0.13%)
     
  • Nasdaq Futures

    13,907.00
    +9.75 (+0.07%)
     
  • Russell 2000 Futures

    2,222.70
    -6.60 (-0.30%)
     
  • Crude Oil

    64.21
    +0.83 (+1.31%)
     
  • Gold

    1,767.10
    -3.50 (-0.20%)
     
  • Silver

    25.85
    +0.01 (+0.05%)
     
  • EUR/USD

    1.2070
    +0.0029 (+0.24%)
     
  • 10-Yr Bond

    1.6010
    0.0000 (0.00%)
     
  • Vix

    17.74
    +1.49 (+9.17%)
     
  • GBP/USD

    1.3984
    +0.0000 (+0.00%)
     
  • USD/JPY

    108.4850
    +0.3350 (+0.31%)
     
  • BTC-USD

    55,335.32
    -1,850.01 (-3.24%)
     
  • CMC Crypto 200

    1,247.85
    -51.11 (-3.93%)
     
  • FTSE 100

    6,962.34
    -37.74 (-0.54%)
     
  • Nikkei 225

    29,100.38
    -584.99 (-1.97%)
     

Avery Dennison (AVY) Buys ACPO, Expands Product Portfolio

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Avery Dennison Corporation AVY has acquired majority assets of Ohio-based ACPO Ltd. for $87.6 million. The buyout includes coating, finishing and distribution operations at ACPO’s Ohio headquarters, along with three finishing and distribution sites in Atlanta, GA; Oak Creek, WI; and Vancouver, WA.

ACPO is a leading manufacturer of pressure-sensitive overlaminate products for label and flexible packaging markets. The latest buyout will fortify Avery Dennison’s leading position in core label material segments. Also, ACPO’s complementary overlaminate product will aid the company to expand its product portfolio. ACPO will now become part of Avery Dennison’s Label and Graphic Materials (LGM) segment.

Avery Dennison’s LGM segment serves essential categories that are witnessing higher demand owing to the pandemic. Labelling of non-durable consumer goods like food, beverage, home and personal care products account for around 40% of Avery Dennison’s revenues. The company has been witnessing soaring demand for these products amid the pandemic. Over the long term, growing demand from emerging markets on the back of rising middle class, and the consequent surge in demand for packaged goods and shift in labelling technology to pressure-sensitive materials will aid the company.

The LGM segment is also well poised for growth on solid top-line growth and continued margin expansion, volume improvement, focus on high-value categories led by specialty labels, and contributions from productivity initiatives.

These factors, along with the ACPO buyout, supported the company’s shares to climb to a fresh 52-week high of $157.25 during the Jan 4 trading session, before retracting to close at $151.90.

Share Price Performance

The company’s shares have gained 20.2% over the past three months compared with the industry’s growth of 23.5%.



Zacks Rank & Other Stocks to Consider

Avery Dennison currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector include AGCO Corporation AGCO, Crown Holdings, Inc. CCK and Ball Corporation BLL. While AGCO flaunts a Zacks Rank #1 (Strong Buy), Crown Holdings and Ball Corp carry a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO has a long-term earnings growth rate of 13.2%. The stock has appreciated 42% in three months’ time.

Crown Holdings has a long-term earnings growth rate of 5%. Shares of the company have gained 24.8% in the past three months.

Ball Corp has a long-term earnings growth rate of 5%. Over the past three months, the company’s shares have rallied 12.1%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AGCO Corporation (AGCO) : Free Stock Analysis Report
 
Ball Corporation (BLL) : Free Stock Analysis Report
 
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
 
Crown Holdings, Inc. (CCK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research