Barbarian At The Gate: Tupperware Brands (TUP)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tupperware Brands as such a stock due to the following factors:
- TUP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.5 million.
- TUP has traded 234,238 shares today.
- TUP traded in a range 269.2% of the normal price range with a price range of $3.10.
- TUP traded above its daily resistance level (quality: 18 days, meaning that the stock is crossing a resistance level set by the last 18 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on TUP:
Tupperware Brands Corporation operates as a direct-to-consumer marketer of various products across a range of brands and categories worldwide. The stock currently has a dividend yield of 4%. TUP has a PE ratio of 16.0. Currently there are 2 analysts that rate Tupperware Brands a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Tupperware Brands has been 561,300 shares per day over the past 30 days. Tupperware has a market cap of $3.3 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.43 and a short float of 8% with 4.73 days to cover. Shares are up 7.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Tupperware Brands as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Household Durables industry and the overall market, TUPPERWARE BRANDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for TUPPERWARE BRANDS CORP is rather high; currently it is at 69.23%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.10% is above that of the industry average.
- TUPPERWARE BRANDS CORP's earnings per share declined by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TUPPERWARE BRANDS CORP reported lower earnings of $4.21 versus $5.18 in the prior year. This year, the market expects an improvement in earnings ($4.95 versus $4.21).
- TUP, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Household Durables industry average, but is less than that of the S&P 500. The net income has decreased by 8.2% when compared to the same quarter one year ago, dropping from $89.70 million to $82.30 million.
- You can view the full Tupperware Brands Ratings Report.
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