StockStory flags three industrial shares amid uneven sector outlook

StockStory named SmartRent, Packaging Corporation of America and Avery Dennison as industrial stocks it views cautiously. The publisher said the industry had a flat return over the past six months, while the S&P 500 rose 16.6%.

StockStory pointed to cyclical uncertainty and the difficulty of timing industrial companies. For SmartRent, it cited annual sales declines of 16.6% over the past two years, historically negative earnings per share and cash-burning tendencies. At the article’s publication, the stock was $1.19, or 30.2 times forward EV-to-EBITDA.

For Packaging Corporation of America, StockStory cited weak unit sales, falling earnings per share over two years and eroding returns on capital. The shares were trading at $229.40, or 19.9 times forward earnings.

StockStory said Avery Dennison’s organic sales performance over the past two years pointed to a need for strategic changes or acquisitions to accelerate growth. It also cited estimated sales growth of 2.3% over the next 12 months and annual earnings-per-share growth of 2.9% over five years, which it said lagged peers. The shares were at $170.69, or 16.3 times forward earnings.