Watch Out: Barbarians At The Gate For Tupperware Brands (TUP)
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 $38.5 million.
- TUP has traded 767,930 shares today.
- TUP traded in a range 252.4% of the normal price range with a price range of $3.70.
- TUP traded above its daily resistance level (quality: 364 days, meaning that the stock is crossing a resistance level set by the last 364 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 4.7%. TUP has a PE ratio of 15. Currently there are no 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 597,800 shares per day over the past 30 days. Tupperware has a market cap of $2.9 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.73 and a short float of 16.6% with 8.23 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Tuesday.
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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, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in net income. We feel its 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:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
- Net operating cash flow has increased to -$7.50 million or 36.44% when compared to the same quarter last year. Despite an increase in cash flow, TUPPERWARE BRANDS CORP's cash flow growth rate is still lower than the industry average growth rate of 56.60%.
- TUPPERWARE BRANDS CORP has improved earnings per share by 45.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TUPPERWARE BRANDS CORP reported lower earnings of $3.69 versus $4.21 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $3.69).
- The gross profit margin for TUPPERWARE BRANDS CORP is currently very high, coming in at 71.30%. Regardless of TUP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TUP's net profit margin of 8.25% compares favorably to the industry average.
- TUP, with its decline in revenue, underperformed when compared the industry average of 3.7%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Tupperware Brands Ratings Report.
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