Should Value Investors Buy Tupperware Brands (TUP) Stock?

TUP

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Tupperware Brands (TUP - Free Report) . TUP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.58, which compares to its industry's average of 20.20. TUP's Forward P/E has been as high as 17.05 and as low as 1.18, with a median of 11.75, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.75. This compares to its industry's average P/S of 1.72.

Finally, we should also recognize that TUP has a P/CF ratio of 8.95. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.33. Over the past 52 weeks, TUP's P/CF has been as high as 30.26 and as low as 3.13, with a median of 11.33.

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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