Trade-Ideas: H.B. Fuller Company (FUL) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified H.B. Fuller Company ( FUL) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified H.B. Fuller Company as such a stock due to the following factors:

  • FUL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.5 million.
  • FUL has traded 312,464 shares today.
  • FUL is trading at a new lifetime high.

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More details on FUL:

H.B. Fuller Company formulates, manufactures, and markets adhesives, sealants, and other specialty chemical products worldwide. It offers specialty adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products. The stock currently has a dividend yield of 1%. FUL has a PE ratio of 21.6. Currently there are 5 analysts that rate H.B. Fuller Company a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for H.B. Fuller Company has been 214,600 shares per day over the past 30 days. H.B. Fuller has a market cap of $2.0 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.44 and a short float of 1.5% with 2.61 days to cover. Shares are up 16.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates H.B. Fuller Company as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.47, which illustrates the ability to avoid short-term cash problems.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 50.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has significantly increased by 69.54% to $48.49 million when compared to the same quarter last year. In addition, FULLER (H. B.) CO has also vastly surpassed the industry average cash flow growth rate of -2.04%.
  • FULLER (H. B.) CO has improved earnings per share by 10.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FULLER (H. B.) CO reported lower earnings of $1.34 versus $1.62 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $1.34).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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