Today's Pre-Market Mover With Heavy Volume: H.B. Fuller Company (FUL)

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 pre-market mover with heavy volume 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 $10.1 million.
  • FUL traded 31,201 shares today in the pre-market hours as of 8:34 AM, representing 11.2% of its average daily volume.

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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 operates in four segments: Americas Adhesives; Construction Products; Europe, India, Middle East and Africa; and Asia Pacific. The stock currently has a dividend yield of 1.1%. FUL has a PE ratio of 27.0. Currently there are 5 analysts that rate H.B. Fuller Company a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for H.B. Fuller Company has been 233,800 shares per day over the past 30 days. H.B. Fuller has a market cap of $2.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.90 and a short float of 2.4% with 5.81 days to cover. Shares are down 15.8% year-to-date as of the close of trading on Tuesday.

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 revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. 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 7.6%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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 1.22, which illustrates the ability to avoid short-term cash problems.
  • FULLER (H. B.) CO's earnings per share declined by 21.6% 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 increased its bottom line by earning $1.88 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($2.90 versus $1.88).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Chemicals industry. The net income has decreased by 20.8% when compared to the same quarter one year ago, dropping from $25.93 million to $20.54 million.

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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