Shares of Avery Dennison Corporation AVY scaled a fresh 52-week high of $228.09 during the trading session on Aug 27, before retracting a bit to close at $226.14. The company’s forecast-beating second-quarter 2021 results, upbeat current-year outlook, solid pandemic-induced demand for essential categories, as well as cost-control actions are driving the share-price appreciation.Avery Dennison’s shares have gained 46.8% so far this year, outperforming the industry’s growth of 34.3%.Image Source: Zacks Investment ResearchEarnings & Sales Beat Estimates in Q2The company delivered adjusted earnings of $2.25 per share during the second quarter, beating the Zacks Consensus Estimate of $2.07. Revenues of $2.10 billion also surpassed the consensus mark of $1.96 billion. Both the top- and bottom-line figures increased 77% and 37.7% year over year, respectively. Avery Dennison has a trailing four-quarter average earnings surprise of 14.2%.Driving FactorsLabelling 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 run, increasing 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 fuel the company’s growth. Apart from this, around 15% of its revenues is tied to logistics and shipping, which will be aided by rise in e-commerce activities.The company’s Label and Graphic Materials segment is gaining from strong demand for consumer-packaged goods and e-commerce trends in its Label and Packaging Materials business. In 2021, the segment is well poised to benefit from solid top-line growth and margin expansion, volume improvement, focus on high-value categories led by specialty labels, contributions from productivity initiatives, as well as pandemic-driven demand for essential products.Avery Dennison will benefit from its rapidly-growing high-value product categories, such as Intelligent Labels, Radio-frequency identification (RFID) and core apparel label business as retailers and brands gear up for a solid rebound in end-market demand, aided by double-digit growth in external embellishments. These factors are aiding the Retail Branding and Information Solutions segment. In addition, the company is focused on investing in digital identification technologies. Recently, Avery Dennison entered into an agreement to acquire Vestcom for $1.45 billion in an effort to expand the company’s foothold in high value categories, while adding channel access and data-management capabilities to RBIS that have the potential to further advance Intelligent Labels strategy. The Industrial and Healthcare Materials segment is gaining from the rebound in demand for industrial products and focus on investments. Given these factors, Avery Dennison now projects earnings per share between $8.65 and $8.95 in 2021, up from the prior guidance of $8.40-$8.80.The management has also undertaken temporary cost-containment actions to negate the impact of waning demand in some of the company’s businesses due to the pandemic. It anticipates incremental savings from restructuring actions, net of transition costs of roughly $60-$65 million in the ongoing year. The company is responding to the cost increases through a combination of product re-engineering and pricing, and has announced additional price increases in most of its businesses across the world.Positive Growth ProjectionsThe company’s earnings estimate for the current year is pegged at $8.94, suggesting year-over-year growth of 25.9%.Zacks Rank & Stocks to ConsiderAvery Dennison currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the Industrial Products sector include Encore Wire Corporation WIRE, Lincoln Electric Holdings, Inc. LECO and Lindsay Corporation LNN. While Encore Wire and Lincoln Electric sport a Zacks Rank #1 (Strong Buy), Lindsay carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Encore Wire has a projected earnings growth rate of 332.6% for fiscal 2021. So far this year, the company’s shares have gained 45%.Lincoln Electric has an expected earnings growth rate of 45.1% for 2021. The stock has appreciated 22%, year to date.Lindsay has an estimated earnings growth rate of 17.4% for fiscal 2021. The company’s shares have gained 35%, so far this year. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Lindsay Corporation (LNN): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Encore Wire Corporation (WIRE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research