Avery Dennison Corporation (NYSE:AVY) is slated to release first-quarter 2018 results on Apr 25 before the opening bell.
In the last reported quarter, the company recorded year-over-year improvement in both its top and bottom lines. Further, the company delivered a positive earnings surprise of 6.4% in the quarter. It is worth noting that Avery Dennison has outperformed the Zacks Consensus Estimate in the preceding four quarters, with an average positive earnings surprise of 6.8%.
Avery Dennison Corporation Price and EPS Surprise
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Further, Avery Dennison’s shares have outperformed the industry’s performance in the past year. The stock has gained 31.8%, compared with the industry's growth of 26.3%.
Here’s What Our Quantitative Model Predicts
Our proven model does not conclusively show that Avery Dennison will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
That is not the case here as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -4.66%.
Zacks Rank: Avery Dennison is #3 Ranked. Though a Zacks Rank of 3 increases the predictive power of ESP, a negative ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few industrial products stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Axon Enterprise, Inc. (NASDAQ:AAXN) has an Earnings ESP of +12.50% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. Axon’s shares have surged 85% in the past year.
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The Earnings ESP for Alarm.com Holdings, Inc. (NASDAQ:ALRM) is +5.44%. It sports a Zacks Rank #1. Shares of Alarm.com Holdings have gone up 32% in a year’s time.
Rexnord Corporation (NYSE:RXN) has an Earnings ESP of +4.36% and a Zacks Rank #2. Its shares have gone up 34% in a year’s time.
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Rexnord Corporation (RXN): Free Stock Analysis Report
Avery Dennison Corporation (AVY): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): Free Stock Analysis Report
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