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Is Tupperware Brands (TUP) Stock Undervalued Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 company value investors might notice 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 has a Forward P/E ratio of 8.02. This compares to its industry's average Forward P/E of 20.32. Over the past year, TUP's Forward P/E has been as high as 17.05 and as low as 1.08, with a median of 11.75.

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 0.79. This compares to its industry's average P/S of 1.83.

Finally, investors should note that TUP has a P/CF ratio of 9.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.33. TUP's P/CF has been as high as 30.26 and as low as 0.89, with a median of 11.33, 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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