Should you exit your Tupperware Brands (USA Stocks:TUP) positions in consequence of the latest analyst consensus?

Tupperware Brands (USA Stocks:TUP), a key player in the Consumer Cyclical sector and Household Durables service category, has been on the radar of investors due to its recent performance. Despite a challenging fiscal year ending in December, with a net income applicable to common shares showing a loss of $14.2M and net interest income recording a loss of $26M, the company managed to generate a total revenue of $1.3B. The enterprise value revenue stands at 0.6087, indicating a relatively undervalued position. The company's shares have seen a 52-week high of $8, with the analyst's lowest estimated target price also at $8. However, the potential upside is estimated at 38.64, with a possible upside price of $18.4. The company's stock has a total risk alpha of 2.44, a semi deviation of 8.35, and a downside deviation of 9.38, reflecting a high-risk, high-reward scenario. The Sortino ratio of 0.2355 further indicates the potential for positive returns. Despite the downside variance of 87.99 and a semi variance of 69.67, the market risk adjusted performance stands at 0.3974, suggesting the stock's potential to offer good returns. The current analyst overall consensus for Tupperware Brands is a 'Hold', with 1 hold recommendation. With 8M shares short and 10.9M shares short the prior month, investors may want to consider rebalancing their portfolio with Tupperware Brands, keeping in mind the risk factors and potential upside. Tupperware Brands is set to announce its earnings tomorrow, with the subsequent financial report anticipated for November 1, 2023. As the excitement around the household durables sector grows, we aim to assess the viability of investing in Tupperware. Our evaluation will determine whether the shares of Tupperware Brands are reasonably priced, considering the most recent economic outlook.
Published over two months ago
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Reviewed by Rifka Kats

Investors might want to consider the potential upside of adding Tupperware Brands (TUP) to their portfolios. With a Potential Upside of 38.64%, Tupperware Brands is showing promising prospects. The company's Mean Deviation of 10.34 suggests a potential for higher returns. However, it's crucial to note that this comes with a higher risk, as indicated by the Jensen Alpha of 2.25. Tupperware Brands has also reported a Return On Assets of 0.0529, indicating that the company is profitable. However, the company has reported a loss in Net Income From Continuing Ops of $28.4M, which is a significant factor to consider. Therefore, while Tupperware Brands presents a potentially profitable investment, it's crucial to balance this with the associated risks.

Broadened assessment of Tupperware

The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently reports. Tupperware Brands has an asset utilization ratio of 137.11 percent. This suggests that the company is generating $1.37 for each dollar of assets. An increase in asset utilization indicates that Tupperware Brands is becoming more efficient with each dollar of assets it uses for daily operations.
What is the right price you would pay to acquire a share of Tupperware Brands? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Tupperware Brands this year

Annual and quarterly reports issued by Tupperware Brands are formal financial statements that are published yearly and quarterly and sent to Tupperware stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Tupperware Brands often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

Tupperware Brands Gross Profit

Tupperware Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Tupperware Brands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Tupperware Brands Gross Profit growth over the last 10 years. Please check Tupperware Brands' gross profit and other fundamental indicators for more details.

Is Tupperware a risky opportunity?

Let's check the volatility. Tupperware is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Tupperware (USA Stocks:TUP) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Tupperware Brands stock makes you a part-owner of that company. The Tupperware Brands Corporation (USA Stocks: TUP) is currently under scrutiny following the latest analyst consensus. The company, a key player in the Packaging & Containers industry, has a market capitalization of $73.83M and a total revenue of $1.3B. However, Tupperware's financial health is not without concern.
The company has a current ratio of 1.33X, which, although relatively stable, indicates a marginal liquidity position. Tupperware's stock has a Beta of 2.78, suggesting high volatility and potential risk. This is further evidenced by the company's probability of bankruptcy, standing at a worrying 31.73%. Additionally, Tupperware's net income from continuing operations has reported losses of $28.4M, reflecting the company's struggle to maintain profitability. Despite these concerns, the company's five-year return stands at 8.52%, and it maintains a decent price to earnings ratio of 2.15X. Furthermore, Tupperware's shares are largely owned by institutions (60.81%) and insiders (11.20%), indicating confidence in the company's long-term prospects. In conclusion, while Tupperware Brands presents potential upside, its financial stability and high volatility suggest caution. Investors should carefully consider these factors when deciding whether to rebalance their portfolio with TUP. .

Anything left for Tupperware Brands after the latest fall?

Tupperware Brands Corporation's stock has recently been under significant pressure, with the semi-variance dropping to 69.67 as of today. This decrease in semi-variance, a measure of downside risk, might suggest a decline in the stock's price volatility. However, investors should exercise caution. While a reduced semi-variance may indicate a lower potential for extreme negative returns, it does not necessarily signal a reversal of the stock's recent downward trend. Therefore, it's essential to consider other market factors and financial indicators before determining the future potential of Tupperware Brands following its recent decline. Tupperware Brands has demonstrated high volatility in returns over the selected time horizon. We encourage all investors to further investigate this asset to ensure that their market timing strategies align with the implied risk of Tupperware Brands. Understanding different market volatility trends can often assist investors in timing the market. The correct use of volatility indicators allows traders to measure the risk of Tupperware Brands' stock against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly impact Tupperware Brands' stock price, adding stress to investors as they watch the value of their shares plummet. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, Tupperware Brands (TUP) presents a complex investment scenario. With a Valuation Real Value of 3.45 and a Valuation Market Value of 1.66, there is a clear discrepancy between the perceived and actual value of the stock. The Analyst Overall Consensus leans towards a 'Hold' position, with both the highest and lowest estimated target prices at 8. This suggests that the market is not expecting significant price movements in the near term. However, with a possible upside price of 18.4, there is potential for substantial growth if the company can leverage its strengths and overcome its challenges. Investors should carefully consider these factors and their own risk tolerance before deciding whether to invest in TUP. .

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Tupperware Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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