雅虎香港財經 Jim Cramer Weighs In on H.B. Fuller Company (NYSE:FUL)
We recently published a list of Jim Cramer's Latest Portfolio: 10 Best Stocks to Buy. Since H.B. Fuller Company (NYSE:FUL) is on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about discipline during short-term market rallies and emphasized the importance of knowing when to take some profits off the table when things are going your way. According to Cramer, the “most important lesson” in short-term rallies is that “you always have to work hard to prepare yourself for the future.”
Cramer said that you should not “give in” to the market euphoria and hit “buy, buy, buy” when the market is “roaring.” The CNBC host said for many it becomes difficult to sell because they feel they were late to the rally and want to hold on to their best-performing stocks during bull runs. But Cramer questioned this thinking: if your portfolio sees big gains and you let it “ride” the rally without selling any stocks and eventually those gains begin to “evaporate,” how is that different from totally missing out on the rally? “It isn’t,” Cramer said.
Cramer talked about the post-COVID rally of 2020 and 2021 where the market saw an “unbelievable” bull run, only to pare those gains after the Fed’s pivot and its “war” on inflation. Jim Cramer advised investors to always remain “tethered” to reality.
“If you would have sold stocks gradually on their way up as I told you to do you’d have been in a much better shape as the market spent the next 11 months getting obliterated,” said Cramer.
For this article we watched several latest programs of Jim Cramer aired over the past few days and picked 10 stocks he’s bullish on. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
H.B. Fuller Company (NYSE:FUL)
Number of Hedge Fund Investors: 18
Jim Cramer was recently asked about H.B. Fuller Company (NYSE:FUL) during his program on CNBC. Here’s what he said:
“It’s a great, little industrial company. It’s been around forever and you should buy it.”
Adhesives manufacturing company H.B. Fuller Company (NYSE:FUL) has been around for 130 years. Last year H.B. Fuller Company (NYSE:FUL) saw a 240 basis points growth EBITDA margins to 16.5% of sales, driven by positive factors related to pricing, cost controls and easing of inflationary pressures. Earlier this year H.B. Fuller Company (NYSE:FUL) raised its dividend by 8%, and also announced the acquisition of ND Industries. H.B. Fuller Company (NYSE:FUL) has been on a buying spree to expand its footprint. It has also acquired ZKLT Polymer Co., Ltd and Apollo Chemicals Limited.
As of December 2023, cash and cash equivalents of the company are worth $179 million, trade receivables stand at about $577 million. The stock’s forward P/E ratio is 18, not much higher than the industry average of 15.65, given Wall Street expectation of 15.10% earnings growth for H.B. Fuller Company (NYSE:FUL) next year.
Average analyst estimate on the stock set by Wall Street is $93.83, which presents a 20% upside potential from the stock price on June 19.
Overall, H.B. Fuller Company (NYSE:FUL) ranks 10th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Best Stocks to Buy. While we acknowledge the potential of FUL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than H.B. Fuller Company (NYSE:FUL) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published on Insider Monkey.
