Tupperware Brands (TUP) Is Water-Logged And Getting Wetter Today

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 or Stephanie Link.

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 $44.6 million.
  • TUP has traded 306,315 shares today.
  • TUP traded in a range 250.7% of the normal price range with a price range of $3.26.
  • TUP traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. 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 3.3%. TUP has a PE ratio of 15.9. Currently there are 3 analysts that rate Tupperware Brands a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tupperware Brands has been 618,600 shares per day over the past 30 days. Tupperware has a market cap of $4.4 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.21 and a short float of 5% with 4.31 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tupperware Brands as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and good cash flow from operations. 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:
  • TUPPERWARE BRANDS CORP has improved earnings per share by 29.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TUPPERWARE BRANDS CORP increased its bottom line by earning $5.18 versus $3.43 in the prior year. This year, the market expects an improvement in earnings ($5.60 versus $5.18).
  • TUP's revenue growth trails the industry average of 27.9%. Since the same quarter one year prior, revenues slightly increased by 0.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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 68.61%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.50% is above that of the industry average.
  • Net operating cash flow has slightly increased to $197.50 million or 5.50% when compared to the same quarter last year. Despite an increase in cash flow of 5.50%, TUPPERWARE BRANDS CORP is still growing at a significantly lower rate than the industry average of 56.14%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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