We recently published a list of 16 Best 52-Week Low Stocks To Buy Now According to Short Sellers. In this article, we are going to take a look at where H.B. Fuller Company (NYSE:FUL) stands against the other 52-week low stocks.
The US stock market reached new all-time highs in late February 2025, as inflation remained near the 2% target while a potential end in the Ukraine conflict sparked some optimism for the long term. Besides the creation of multi-billion-dollar demand for potential rebuilding efforts of the country, including agriculture, residential, and infrastructure, the return of American business to Ukraine and Russia is a big win for most corporations, many of which could experience up to double-digit uplift in revenue and earnings growth due to up to 200 million customer market. More importantly, this outlook is favorable for energy security, stimulates volumes, and might push energy prices lower, which in turn allows for higher profitability.
Despite the aforementioned tailwinds, the US stock market gains are still largely driven by the Magnificent 8 companies, which trade at record-high valuations and have contributed to an unprecedented rise in the stock market concentration. These companies are anticipated to have tremendous growth opportunities arising from AI and data center megatrends, on top of existing rapidly growing niches like cloud computing, media streaming, SaaS, and others. Only time will tell whether the current valuations are fair; what is certain is that many industries have been struggling since 2022, as inflationary pressures followed by high interest rates and an increasingly tough labor market dominated by layoffs and scarcity of entry-level positions have put tremendous pressure on US consumers. The high financing costs have led to diminishing Capex appetite in many industries, leading to struggle in several market segments – perfectly illustrated by underperforming consumer discretionary and industrial sectors since 2022.
On top of harsh macro conditions in the last 3 years, the new “Trump 2.0” regime and his administration can be a threat for the healthcare sector. Trump is a notorious critic of the health insurance business and might create headwinds for it through attempts of deregulation and efforts to cut the government financing of healthcare programs. As a result, the healthcare sector relative to the overall market is at record lows comparable to the 2008 depression. All in all, despite apparent optimism in the market, there are pockets of underperformance and many companies trading near their 52-week low, which may present compelling opportunities to acquire good companies at attractive prices.
Our Methodology
We screened 30-40 stocks with at least $1 billion in market cap that are near their 52-week lows. Then we sorted them by open short interest as a percentage of outstanding shares and included the top 16 with the lowest open short interest in the article. Our belief is that a low open short interest implies a lack of bearish views on the business from leading hedge funds, which represents a bullish signal from a contrarian perspective.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A close-up of hands working on a medical device supported by the company’s specialty chemicals.
H.B. Fuller Company (NYSE:FUL)
Short Interest as % of Shares Outstanding: 2.36%
H.B. Fuller Company (NYSE:FUL) is a global leader in adhesives, sealants, and specialty chemical solutions, serving industries such as packaging, construction, automotive, and electronics. With a strong focus on innovation and sustainability, the company develops high-performance bonding solutions that enhance product durability and efficiency. FUL’s global reach, deep technical expertise, and commitment to research and development enable it to address evolving customer needs and industry trends.
After a strong 1H 2024, the performance of H.B. Fuller Company (NYSE:FUL) in the subsequent months has been sluggish, due to a slowdown in demand and an overall constrained environment in all geographies and product categories. The company’s solar business saw volumes down in all global regions due to the overcapacity of solar panels. In Q4 2024, the company announced the first decline in pricing in certain categories. Also, the market reacted negatively to the announcement of the divestiture of the flooring business due to an inability to achieve the desired profitability. While the aforementioned developments might be interpreted as a lack of execution from the company itself, it is undeniable that management is already taking the right steps to navigate the difficult environment – they have already begun executing additional pricing actions and cost controls. Also, FUL announced a plan to significantly reduce its global manufacturing footprint, streamline the North American logistics and delivery operations, and strategically improve inventory management – this multiyear plan will reduce the number of manufacturing facilities from 82 to a target of 55 by 2030, which should substantially improve the company’s profitability and cash generation capacity. All in all, H.B. Fuller Company (NYSE:FUL) reaching a new 52-week low while the right strategic steps are taken can be an opportunity for bulls, especially considering the bears’ reluctance to short this stock.
Overall, FUL ranks 8th on our list of the best 52-week low stocks to buy now according to short sellers. 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 FUL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
