New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

3 Surprising Investing Ideas for Avery Dennison Employees in 2025

Healthcare Provider Update: Healthcare Provider for Avery Dennison Avery Dennison has partnered with various healthcare providers for employee health benefits; however, specific provider affiliations may vary by region and specific employee health plans. To obtain the most accurate and relevant information regarding Avery Dennison's current healthcare provider, it is advisable for employees to consult their Human Resources department or employee benefits documentation. Potential Healthcare Cost Increases for Avery Dennison in 2026 In 2026, healthcare costs for Avery Dennison employees utilizing Affordable Care Act (ACA) marketplace plans may soar as premium hikes are projected to exceed 60% in some states. This stark increase is driven by the potential expiration of enhanced federal premium subsidies and rising medical costs. As many as 92% of marketplace enrollees could face an average out-of-pocket premium increase of over 75%. Employees should proactively assess their health plan options now to mitigate financial impacts and explore available employer-sponsored alternatives. Click here to learn more

'For Avery Dennison employees, the rapid market rebound in 2025 reinforces the value of disciplined, research-driven decision-making—especially when considering sector trends like tech's recovery and the structural challenges in consumer staples.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'The 2025 market turnaround highlights how Avery Dennison employees can benefit from focusing on long-term sector dynamics—such as technology’s renewed potential—rather than reacting to short-term volatility.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

How the rebound in U.S. equities may still offer opportunities for long-term investors.
Why technology stocks are regaining momentum following a valuation reset.
The structural challenges facing consumer staples despite their traditional defensive appeal.

The first seven months of 2025 showcased how difficult it can be to time investment decisions during a year of sharp economic pivots and sudden market reversals. Early in the year, global tariff announcements sent shockwaves through markets, causing the S&P 500® to fall 19% from its mid-February highs, ¹ narrowly sidestepping bear market territory. But recovery followed quickly. The index rebounded roughly 30% from its April 8 low. ² For Avery Dennison employees with exposure to equity markets, this swift rebound highlights the challenge of reacting to short-term volatility instead of maintaining a long-term perspective.

While trade-related uncertainty remains, a broader question has emerged: Has the rebound outpaced fundamental growth? Some analysts believe market valuations are stretched, while others—such as Fidelity’s Denise Chisholm—suggest that specific sectors, particularly technology, still present potential opportunities. Chisholm, Fidelity’s Director of Quantitative Market Strategy, points to three investing themes that could help Avery Dennison retirees and employees make more informed decisions as the year continues. ³

1. U.S. Stocks Could Keep Outperforming

Following the April rally, many began scrutinizing market valuations. Despite concerns that stocks were overvalued before the downturn and may be even more so now, Chisholm’s historical analysis of 19%+ declines shows limited connection between elevated valuations during pullbacks and future performance. This insight may be particularly useful for Avery Dennison employees with retirement accounts invested in broad-market indexes.

A more revealing factor is corporate earnings expectations. “Net earnings revisions”—the difference between upward and downward analyst estimates—fell into the bottom 25% of their historical range in April. ⁴ Historically, this has been followed by an average 12% S&P 500 gain over the next 12 months, according to Haver Analytics and Fidelity data from 1977 through May 2025. ⁴

Another encouraging sign is the increase in real personal income earlier this year. For those at Avery Dennison planning their post-career financial strategies, rising consumer income tends to support stronger corporate earnings. In fact, when real personal income rises, corporate earnings growth over the following year is similarly positive 85% of the time. ⁴

Credit markets offer another signal. The narrow spread between high-yield corporate bonds and U.S. Treasuries—often viewed as a proxy for investor sentiment—suggests continued optimism. For Avery Dennison stakeholders tracking market health, this may reflect investor confidence in corporate profitability and credit conditions.

2. Technology Stocks May Take the Lead Again

Tech stocks experienced a correction in early 2025 after years of strong performance. This adjustment pushed their valuations—based on the forward price-to-earnings ratio relative to the broader S&P 500—into the historical median range. Historically, when this level is reached, tech stocks have outperformed the S&P 500 by 5% over the following 12 months. ⁴

For Avery Dennison professionals considering sector allocation, this valuation reset may indicate an opening in technology. According to research from Fidelity and FactSet, when speculative tech names—typically viewed as high-risk—drop into the lowest 25% of historical valuations, the entire tech sector has a 79% chance of outperforming the broader market over the following year. ⁴

This combination of historical probability and relative value makes the tech sector worth close attention. The reset in prices could renew investor interest, especially if upcoming earnings results outperform expectations. Avery Dennison employees managing portfolios may discover longer-term growth potential in parts of the market that have experienced recalibrated valuations.

3. The Underperformance of Consumer Staples

Consumer staples—companies producing essentials like food and household items—are often considered more stable holdings. During the early 2025 market dip, many investors shifted toward these stocks in search of consistency. However, Avery Dennison retirees evaluating income-focused portfolios may want to reassess the sector’s outlook.

Although valuations have returned to historical medians, consumer staples have not historically outperformed unless valuations reach the lower quartile. Data since 2000 show weak performance from mid-range valuation levels, especially compared to the tech sector’s behavior.

In addition, profit margins in the sector have steadily declined. By early 2025, margins were near two-decade lows, which may limit earnings growth. For Avery Dennison employees reviewing income strategies in retirement, these long-term pressures may reduce the appeal of the sector—even if consumer demand remains relatively consistent during downturns.

A Prospective View for Avery Dennison Employee Portfolios

After a dramatic rebound in 2025, many investors are weighing their next steps. For Avery Dennison employees balancing growth potential and downside exposure, historical trends may offer useful insights. The mid-range valuations in technology, rising real income, and contrarian earnings signals suggest that U.S. equities may still provide room for further advancement.

Sector allocation decisions may play an increasingly important role. Technology could benefit from valuation resets and performance trends, while consumer staples may face continued margin pressure. Avery Dennison retirees exploring future-focused allocations may want to pay attention to these sector-specific developments.

Chisholm’s findings offer a research-based perspective to assess these shifts. She emphasizes evaluating valuation resets, earnings expectations, and credit spreads rather than reacting to market headlines. For Avery Dennison stakeholders, this measured approach may offer a clearer path through ongoing market uncertainty.

In June 2025, J.P. Morgan Asset Management highlighted dividend-paying stocks—particularly in health care and utilities—as appealing options during late-cycle environments due to their consistent cash flow. ⁵ They also noted that infrastructure investments may help offset inflation risks, and that short-duration bonds yielding over 5% can provide income while limiting interest rate sensitivity. These three ideas—dividends, infrastructure, and short-term bonds—may contribute to a more balanced approach for Avery Dennison retiree portfolios.

Key Takeaway for Avery Dennison Employees

Explore the major investment themes of 2025: U.S. stock momentum, shifting tech valuations, and structural concerns in consumer staples. Learn how trends in net earnings revisions, bond spreads, and income growth can inform longer-term planning. Historical data from Haver Analytics, FactSet, and Bloomberg, along with Chisholm’s sector analysis, may provide meaningful context for Avery Dennison employees navigating today’s complex market environment.

Analogy:

Today’s investment environment for Avery Dennison employees is like planning a well-balanced retirement meal: short-duration bonds are the refreshing drink—low volatility and steady; infrastructure funds are the hearty side—resilient in tough economic climates; and dividend stocks serve as the main course—reliable and consistent. Like a nourishing plate, each component plays a distinct role in adjusting to evolving market conditions.

Featured Video

Articles you may find interesting:

Sources:

1. Yahoo!Finance. ' Analyst resets S&P 500 forecast for rest of 2025 ,' by Todd Campbell, 20 July 2025.

2. Quoniam. ' Market commentary equities: Low single-digit returns in 2025, but massive undercurrents ,' by Mark Frielinghaus, 10 July 2025.

3. Fidelity. ' 4 investing ideas for the rest of 2025 ,' by Denise Chisolm, 4 June 2025.

4. Fidelity. ' Q3 2025 Quarterly Sector and Investment Research Update ,' by Denise Chisolm, 28 July 2025.

5. J.P. Morgan Asset Management. ' Mid-Year Investment Outlook 2025: Comfortably Uncomfortable ,' by J.P. Morgan Chase & Co., 5 May 2025.

How does the transition of the Avery Dennison U.S. Pension Plan to a group annuity contract affect current employees who are nearing retirement, and what steps should they consider taking during this transition to ensure their benefits are secure from Avery Dennison?

Current Employees Nearing Retirement: The transition to a group annuity contract should not affect the accrued benefits of current employees nearing retirement. The terms of the annuity payments will match those provided by the previous pension plan. Employees should ensure their personal information is updated and consult with the Avery Dennison Retirement Center to understand the timing of their benefits commencement during the transition period.

In what ways does Avery Dennison support employees who are considering their options for retirement benefits, particularly those who may not have previously explored their pension plan details prior to the transition to an insurer?

Support for Employees Exploring Retirement Options: Avery Dennison assists employees by providing detailed information through their retirement center and online resources. Employees are encouraged to review the changes and implications of the annuity transition and contact the retirement center for personalized advice, particularly if they have not previously explored their pension plan details.

Can you elaborate on the implications of the group annuity contract for employees who have recently retired from Avery Dennison, particularly concerning how their benefits are administered compared to the previous pension plan structure?

Recently Retired Employees: For those who have recently retired, the administration of their benefits will shift from Avery Dennison to the selected insurer but this should not change the amount, timing, or form of the benefits they receive. This ensures continuity in the administration of benefits without affecting the retirees directly.

For employees currently receiving benefits through Avery Dennison, how will the transition to the selected insurer impact the continuity and reliability of their monthly payments, and what measures are in place to safeguard these payments?

Continuity and Reliability of Payments: The transition involves the selection of a highly rated insurer, ensuring the reliability of ongoing monthly payments. Avery Dennison has put measures in place, including a thorough selection process involving an independent fiduciary, to safeguard these payments.

What are the specific protections offered to beneficiaries under the group annuity contracts once the Pension Plan transitions away from Avery Dennison's administration, and how do these protections differ from those provided under the Pension Benefit Guaranty Corporation (PBGC)?

Protections for Beneficiaries: After the transition, the state guaranty associations, rather than the Pension Benefit Guaranty Corporation (PBGC), will offer protection to beneficiaries. This shift means that while the federal insurance via PBGC will no longer apply, state-level insurance, which has its own limits and guarantees, will take over.

In light of the transition to the group annuity, how should employees at Avery Dennison go about updating their personal information, such as addresses or banking details, and what timelines should they be aware of during this process?

Updating Personal Information: Employees should update their personal details such as addresses or banking information through the Avery Dennison Retirement Center by specific deadlines during the transition period. Post-transition, such updates should be made directly with the new insurer.

How does Avery Dennison ensure that the financial health of the selected insurer for the group annuity contract is sufficient to meet the obligations to its retirees, and what standards are applied during the selection process?

Financial Health of the Insurer: Avery Dennison ensures the financial adequacy of the selected insurer through a rigorous selection process managed by an independent fiduciary. This includes evaluations of the insurer's financial stability, claims-paying ability, and overall business practices.

After the transition to an insurer is complete, what should employees of Avery Dennison do if they have questions regarding their retirement benefits, and how will communication be handled moving forward to ensure clarity and support?

Post-Transition Communication: After the transition, employees should direct their questions regarding retirement benefits to the selected insurer's service center. Avery Dennison will provide contact details and further instructions in a welcome kit following the transition.

How does the U.S. tax legislation impacts the retirement benefits of Avery Dennison employees who are transitioning to a group annuity, particularly concerning taxation of these annuity payments during retirement?

Impact of U.S. Tax Legislation: The transition to a group annuity may affect the taxation of retirement benefits. Employees are advised to consult with tax professionals to understand the specific impacts based on their personal circumstances.

For employees seeking more information regarding the details of their retirement benefits and the implications of the insurer transition, how can they contact Avery Dennison to discuss their specific circumstances and gain clarity on any outstanding questions?

Accessing Further Information: Employees seeking more details about their retirement benefits post-transition can contact Avery Dennison through their designated Retirement Center or access information via the company's dedicated benefits website. This is crucial for obtaining clarity on specific circumstances and outstanding queries regarding the transition.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Avery Dennison announced a major restructuring plan that includes layoffs affecting approximately 10% of its global workforce. The company is also revising its pension and 401(k) plans to better align with current economic conditions.

Additional Articles

Check Out Articles for Avery Dennison employees

For more information you can reach the plan administrator for Avery Dennison at 207 Goode Ave Glendale, CA 91203; or by calling them at +1 626-304-2000.