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Is H. B. Fuller (FUL) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is H. B. Fuller (FUL - Free Report) . FUL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.94, which compares to its industry's average of 21.44. Over the past 52 weeks, FUL's Forward P/E has been as high as 18.44 and as low as 11.31, with a median of 13.44.

FUL is also sporting a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUL's PEG compares to its industry's average PEG of 1.35. Within the past year, FUL's PEG has been as high as 1.54 and as low as 0.71, with a median of 1.01.

Investors should also recognize that FUL has a P/B ratio of 1.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.93. Over the past year, FUL's P/B has been as high as 2.49 and as low as 1.48, with a median of 1.77.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FUL has a P/S ratio of 0.85. This compares to its industry's average P/S of 1.74.

Finally, investors should note that FUL has a P/CF ratio of 11.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FUL's current P/CF looks attractive when compared to its industry's average P/CF of 15. Within the past 12 months, FUL's P/CF has been as high as 14.30 and as low as 9.48, with a median of 11.67.

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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