Trade-Ideas LLC identified

Tupperware Brands

(

TUP

) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $41.1 million.
  • TUP has traded 909,055 shares today.
  • TUP traded in a range 213.4% of the normal price range with a price range of $3.15.
  • TUP traded below its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 5.3%. TUP has a PE ratio of 14. Currently there is 1 analyst that rates Tupperware Brands a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Tupperware Brands has been 781,200 shares per day over the past 30 days. Tupperware has a market cap of $2.6 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.64 and a short float of 13.7% with 6.96 days to cover. Shares are down 7.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tupperware Brands as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:

  • The gross profit margin for TUPPERWARE BRANDS CORP is rather high; currently it is at 67.71%. 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 9.81% compares favorably to the industry average.
  • TUP, with its decline in revenue, underperformed when compared the industry average of 2.4%. Since the same quarter one year prior, revenues fell by 12.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Household Durables industry average. The net income has significantly decreased by 29.4% when compared to the same quarter one year ago, falling from $82.30 million to $58.10 million.
  • The debt-to-equity ratio is very high at 4.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.

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