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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

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 an A grade for Value.

Investors will also notice that TUP has a PEG ratio of 1.04. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TUP's PEG compares to its industry's average PEG of 1.86. Over the past 52 weeks, TUP's PEG has been as high as 1.22 and as low as 0.89, with a median of 1.11.

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 0.49. This compares to its industry's average P/S of 1.

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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