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Are Investors Undervaluing Tupperware Brands (TUP) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Tupperware Brands (TUP - Free Report) is a stock many investors are watching right now. TUP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that TUP holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TUP's PEG compares to its industry's average PEG of 1.82. Within the past year, TUP's PEG has been as high as 1.42 and as low as 0.89, with a median of 1.01.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TUP has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.97.

Finally, we should also recognize that TUP has a P/CF ratio of 6.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.13. TUP's P/CF has been as high as 28.76 and as low as 5.12, with a median of 8.02, all within the past year.

These are only a few of the key metrics included in Tupperware Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TUP looks like an impressive value stock at the moment.


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