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Should Value Investors Buy H. B. Fuller (FUL) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is H. B. Fuller (FUL - Free Report) . FUL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 15.18 right now. For comparison, its industry sports an average P/E of 32.52. Over the last 12 months, FUL's Forward P/E has been as high as 16.62 and as low as 7.42, with a median of 13.66.

Investors will also notice that FUL has a PEG ratio of 1.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FUL's industry has an average PEG of 5.18 right now. Over the last 12 months, FUL's PEG has been as high as 2.17 and as low as 0.79, with a median of 1.37.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FUL has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.48.

These are just a handful of the figures considered in H. B. Fuller's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FUL is an impressive value stock right now.


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