The Case for and Against Avon Products, Inc.

Avon Products, Inc. (AVP) is an interesting player in the Consumer Goods space, with a focus on Personal Products. The stock has been active on the tape, currently trading at $1.90, down from yesterday’s close by -2.06%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Avon Products, Inc. (AVP) currently trades with a market capitalization of $837.71 Million. That value represents a market adjusting for revenues that have been growing by 4.53 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $175.8 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.01 on a per share basis this quarter. Perhaps, that suggests something about why 0.76% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Avon Products, Inc. recorded a 52-week high of $3.89. It is now trading 1.99% off that level. The stock is trading $2.64 its 50-day moving average by 0.74%. The stock carved out a 52-week low down at $1.85.

In recent action, Avon Products, Inc. (AVP) has made a move of -32.86% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.83, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.39% with $439.96 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AVP.
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