The shares of this chemical company were just upgraded to ‘Strong Buy’ at Zacks, due to rising earnings estimates.
H.B. Fuller Company (FUL)
From Upside
Founded in 1887, H.B. Fuller first made adhesives for barrels, shoes, and wallpaper. Today, it’s a global leader in adhesives, sealants, and other specialty chemicals, with operations in 35 countries.
Total revenue hit $2.8 billion last year, up from about $157,000 nearly a century ago. A broad and expanding customer base spans several growing markets, including electronics, automobiles, medical, and construction materials.
H.B. Fuller is benefiting from healthy volume growth and improved profit margins. Consensus earnings estimates have risen 7% over the last 90 days, with the average projecting 25% higher per-share profits for fiscal 2021 ending November. Generous cash flow should help sustain operating momentum and reward shareholders. Trailing 12-month free cash flow increased 11% to $207 million, providing flexibility to capitalize on internal expansion and acquisitions.
Last month, the company increased its quarterly per-share dividend 3% to nearly $0.17.
The stock earns an Overall score of 89, versus the average of 56 for the 37 specialty chemical stocks in Quadrix®. The stock is being started as a Buy.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, May 3, 2021