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Should You Investigate H.B. Fuller Company (NYSE:FUL) At US$59.80?

H.B. Fuller Company (NYSE:FUL), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$71.70 and falling to the lows of US$58.52. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether H.B. Fuller's current trading price of US$59.80 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at H.B. Fuller’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for H.B. Fuller

Is H.B. Fuller Still Cheap?

Good news, investors! H.B. Fuller is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $75.01, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that H.B. Fuller’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will H.B. Fuller generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 59% over the next couple of years, the future seems bright for H.B. Fuller. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since FUL is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on FUL for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FUL. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you'd like to know more about H.B. Fuller as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for H.B. Fuller you should know about.

If you are no longer interested in H.B. Fuller, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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