Should you exit your Tupperware Brands (USA Stocks:TUP) positions in consequence of the latest analyst consensus?
|By Aina Ster|
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.
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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 TupperwareThe 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.