Tupperware Brands Corporation (NYSE: TUP) sells
household goods, beauty items and personal care products. Kitchen and home items are Tupperware branded. Beauty and personal care brands include Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde. Goods are marketed by a sales force of 2.1 million independent contractors, who take orders for items presented to small gatherings of customers they know. Other sales channels involve the Internet, infomercials and mall kiosks. The firm operates in nearly 100 countries.
Tupperware surprised the Street late last month, with Q4 EPS of 93 cents and revenues of $576.9 million. Analysts had been expecting 80 cents and $532.1 million. Management also guided Q1 EPS to 44-49 cents (43 cent consensus), FY08 EPS to $2.50-$2.60 ($2.32 consensus) and FY08 revenues to $2.14-$2.18 billion ($2.04B consensus).
The share
price popped through major moving average resistance on the news and has since been forming a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "strong buys", two "buys" and one "hold". Analysts see a 17% average annual growth rate, through the next five years. The stock's P/E ratio (18.99), PEG ratio (1.12), Price to Sales ratio (1.10), Price to Book ratio (4.13), Price to Free Cash Flow ratio (27.79), Sales Growth rate (18.58%), EPS Growth rate (25.68%) and Return on Equity (25.16%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 91% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $22.80 and $38.87. A stop-loss of $30.75 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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