Expectations are high for specialty chemicals maker H.B. Fuller Co. (FUL) and computer storage company Xyratex Ltd. (XRTX) when they release their quarterly numbers Tuesday after the market closes.

Analysts surveyed by Thomson Reuters are looking for fourth-quarter earnings of 42 cents per share from H.B. Fuller, nearly double last year's 24 cents per share. But revenue is expected to fall 5.8% from a year ago to $329.9 million. The company easily beat earnings estimates in the previous two quarters. Its earnings multiple is 15x, which is far less than the industry average, but the First Call consensus recommendation remains to hold FUL. But Benzinga sees an upside surprise as likely.

It is going to be an interesting week. The Fed and oil will be at odds, and tempers are sure to flare on the trading floors. There are many earnings and eco reports we are looking at, and it is hard to choose which will be front and center. Traders and investors will be closely following every move by the Fed as they will be releasing a policy statement at 2:15 p.m. on Wednesday.

Also, stocks within the homebuilders group will be front and center as a few key players will share their earnings results. Have you seen the charts of these companies lately? Click for a good comparison. And after you take a peek, you may also wonder if they are actually stock charts or ski slopes. So with that as the backdrop, here are a few names that may actually be undercovered and worth a look.

Tuesday, June 24

Anything related to the automobile industry has been under siege of late, and I can't imagine how that will change anytime soon. HB Fuller Co. (NYSE: FUL) is involved in the manufacturing of the industrial performance/adhesive products for the assembly/packaging and automobile markets. The fact that the economy is lagging would lead one to the realization that, unless we see a quick turnaround of epic proportions, the reality of a lower share price will come with the next earnings release. Several down days of late have also had increasing volume, and that is not a good sign for a stock that is beginning to show signs of breaking down. Even so, First Call is showing a $0.45 per share quarterly estimate on $347 million of revenue.

MOST NOTEWORTHY: Cisco Systems, Kirby and First Fed Financial were today's noteworthy downgrades:

• UBS downgraded Cisco (NASDAQ: CSCO) to Neutral from Buy after channel checks indicated orders are slowing, which gives them concern over the July quarter.
  
• Stephens cut Kirby (NYSE: KEX) to Equal Weight from Overweight as they believe a good 2008 is already priced into shares and that the liquid barge industry cycle may be nearing a top.
  
• First Fed Financial (NYSE: FED) was lowered to Neutral from Outperform at Credit Suisse, citing credit quality deterioration.

OTHER DOWNGRADES:

• JP Morgan removed HB Fuller (NYSE: FUL) from its Focus List.
  
• RBC Capital downgraded SourceFire (NASDAQ: FIRE) to Sector Perform from Outperform.
  
• Goldman cut Lloyds TSB Group (NYSE: LYG) to Sell from Neutral.

MOST NOTEWORTHY: Energy Partners (EVEP) and HB Fuller (FUL) led a moderate initiation list Monday as the Dow and Nasdaq moved higher in early trading.

• AG Edwards initiated EV Energy Partners (NASDAQ:EVEP) a Buy and a $22 target, as the firm likes the company's experienced management team, debt-free balance sheet, and low-risk development opportunities.
• Keybanc initiated H.B. Fuller Co. (NYSE:FUL) with a Buy and $28 target, citing low manufacturing cost, portfolio mix and pricing power.
• CE Unterberg initiated Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA) with a Buy and $21 target, as the firm is positive on the company's new revenue model.

OTHER INITIATIONS:

• UBS Investment initiated Ryanair (NASDAQ:RYAAY) with a Buy and a $60.41 target.
• Finally, SG Cowen initiated International Business Machines Corp. (NYSE:IBM) with a Neutral, citing valuation and a lack of traction in its services unit for the rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).