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Is FTSE All World Removal Altering The Investment Case For Avery Dennison (AVY)?

Simply Wall St · 2d ago
  • Avery Dennison was removed from the FTSE All-World Index in September 2026, a change that can influence how index-tracking funds hold the stock.
  • The deletion highlights how Avery Dennison’s weighting in global benchmarks can shift independently of its labeling, RFID and materials operations.
  • We will explore how Avery Dennison's investment narrative around smart labeling and higher value materials interacts with its FTSE All-World removal.

Scan how Avery Dennison's index exit compares with other materials and packaging players by reviewing the hand picked list of solid balance sheet and fundamentals (25 results) that may interest ETF driven investors.

Avery Dennison Investment Narrative Recap

To own Avery Dennison, you need to believe its smart labeling, RFID and higher value materials can gradually take a larger share of its US$9.2b revenue base, even while core label demand looks slower. The FTSE All-World removal mainly affects how some index funds hold the stock and does not directly alter this operating story.

The more immediate swing factor is how the Materials Group handles the unwind of customer prebuys that recently supported earnings. That reversal, combined with higher raw material and wage inflation, is the key near term risk. If pricing and productivity actions do not keep pace, margins and cash generation could come under pressure.

There are no fresh operational announcements tied directly to the FTSE change, so the most relevant context is existing execution around intelligent labels and mix shift. Avery Dennison has been leaning into RFID programs, pilots in logistics and circular fashion, and rollouts across apparel and food to raise the share of higher value solutions.

For you as a shareholder, the link to the index exit is about conviction. If you think those RFID programs, specialty materials and Vestcom style solutions can steadily offset modest organic growth and cost inflation, the index removal reads more as a technical event. If those projects stall or margins slip, the risk side of the thesis becomes more important than the benchmark change itself.

Avery Dennison's analyst narrative points to revenues of US$10.2b and earnings of US$939.6m by 2029, based on a projected 3.2% yearly revenue growth rate and an earnings increase of about US$234.7m from current earnings of US$704.9m.

Uncover why Avery Dennison's fair value indicates an 18% potential upside to its current price, which could narrow quickly.

NYSE:AVY 1-Year Stock Price Chart
NYSE:AVY 1-Year Stock Price Chart

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span a wide band, from about US$201.8 to US$366.7 per share, which shows how far opinions on Avery Dennison can stretch. Those views predate the FTSE All-World exit and the expected EPS headwind from unwinding prebuys, so treat them as starting points and explore multiple angles before leaning in.

Explore another Avery Dennison fair value estimate, including one that suggests as much as 115% upside from the current price!

Form Your Own Verdict

Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

Looking for more Avery Dennison style investment ideas?

If Avery Dennison has sharpened your focus on quality and mix of growth drivers, it can help to scan a broader watchlist that fits similar risk and balance sheet profiles. The Simply Wall St Screener lets you quickly filter for businesses that line up with the type of financial traits you want to back, rather than relying on headlines or index moves.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.