HB Fuller (FUL) Hits A New 52-Week High On Solid Prospects

Shares of HB Fuller Co. (NYSE:FUL) reached a new 52-week high of $46.60 on Jun 3, before closing the trading session slightly lower at $46.53. This apex improved upon the last 52-week high of $46.21 on Jun 2. The stock currently yields a solid year-to-date return of 28.47%. The trading volume for the session was 0.17 million shares.

A series of events led to an impressive first-quarter fiscal 2016 (ended Feb 2016) that made investors positive about the future prospects of HB Fuller. A snapshot of the last reported quarter reveals a 10.26% positive earnings beat. The top line grew 5.3% year over year, on a constant currency basis, while costs of sales decreased roughly 5%. For fiscal 2016, the company anticipates earnings to be within $2.40−$2.60 per share range, reflecting a year-over-year increase of 15%.

In addition, HB Fuller signed an agreement with Rem Brands, Inc. for its odor removal technology. The association will be advantageous for the company, enabling it to grow its business organically in the hygiene industry. Also, the company has launched a new stretch adhesive. Inorganically, the company has expanded its business through the acquisition of Advanced Adhesives. The latter provides industrial adhesives in Australia and New Zealand.

Also, HB Fuller has awarded its shareholders with increased dividend payments. The quarterly dividend rate has been revised to 14 cents per share, up 8% from the previous rate of 13 cents. Such disbursements increase the shareholders’ wealth and also reflect the company’s sound cash position.

The Zacks Consensus Estimate for HB Fuller Co. currently stands at $2.56 per share for fiscal 2016 and $2.91 per share for fiscal 2017. These estimates represent a year-over-year growth of 18% for fiscal 2016 and 13.6% for fiscal 2017.

With a market capitalization of $2.3 billion, HB Fuller Co. currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the chemical industry include AgroFresh Solutions, Inc. (NASDAQ:AGFS) , Chemtura Corporation (NYSE:CHMT) and Daqo New Energy Corp. (NYSE:DQ) . All these stocks carry a Zacks Rank #2 (Buy).