Will Tupperware Brands (USA Stocks:TUP) price continue to spike in August?

Tupperware Brands (NYSE:TUP), a key player in the Packaging & Containers industry, has been on a bullish trend, with its stock price hitting a 52-week high of $12.86. However, the company's financials present a mixed picture. The company reported a net income loss of $28.4M from continuing operations, despite an income before tax of $25.6M. This loss was largely due to a hefty income tax expense of $54M. On the brighter side, Tupperware generated interest income of $26M. The company's shares short stood at 9M as of the prior month, representing a short percent of 0.2517. The stock's 200-day moving average is $3.0857, indicating a significant upward trend. However, analysts hold a consensus rating of 'Hold' on the stock, with an estimated target price of $8. With a beta of 2.1499, Tupperware's stock is more volatile than the market, which could mean potential for higher returns, but also higher risk. The company's PEG ratio stands at 1.09, suggesting it may be slightly overvalued. As we move into August, investors should closely monitor these factors to determine if Tupperware's bullish trend will continue. While some of us are enthusiastic about the household durables sector, it's sensible to examine Tupperware Brands in more detail to gain a clearer understanding of its potential. Even with a continued surge in the economy, Tupperware Brands may not be as robust as the overall market. Much of the company's stock price fluctuations have been a rough reflection of the broader market trends. The consistent basic indicators of the company suggest a short-term price swing for retail investors in Tupperware. Tupperware Brands is set to announce its earnings this week, with the upcoming quarterly report expected on August 2, 2023. Currently, the stock is experiencing above-average trading activity.
Published over six months ago
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Reviewed by Michael Smolkin

Tupperware Brands (NYSE:TUP) has shown significant resilience in the market, exhibiting a bullish trend that is expected to continue into August. A look at its technicals reveals a Jensen Alpha of 2.3, indicating that the stock has performed well when adjusted for the risk taken. The company's Mean Deviation stands at 8.67, suggesting a moderate volatility, while the Sortino Ratio of 0.27 points to the potential for a higher risk-adjusted return. However, it's important to note that the company reported a loss of $28.4M from continuing operations, which may be a cause for concern. Despite this, the stock's current quote of $3.08 is above Wall Street's target price of $4, suggesting that the market has confidence in Tupperware's potential for growth.

Broadened assessment of Tupperware

The average rating for Tupperware Brands stock, according to one analyst, is "Hold". But is this consensus based on technical analysis? It's well-known that standard technical analysis employs price momentum, patterns, and trends derived from historical prices. Its goal is to pinpoint signals based on market sentiment towards Tupperware Brands, reflecting investors' perception of the company's future value. Let's delve into a few aspects of the technical analysis for Tupperware Brands.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Tupperware Brands. In general, sophisticated investors focus on analyzing Tupperware Brands stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Tupperware Brands's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Tupperware Brands's intrinsic value. In addition to deriving basic predictive indicators for Tupperware Brands, many experienced traders also check how macroeconomic factors affect Tupperware Brands price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Tupperware Brands' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Tupperware Brands. Your research has to be compared to or analyzed against Tupperware Brands' peers to derive any actionable benefits. When done correctly, Tupperware Brands' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Tupperware Brands.

Watch out for price decline

Please consider monitoring Tupperware Brands on a daily basis if you are holding a position in it. Tupperware Brands is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Tupperware Brands stock to be traded above the $1 level to remain listed. If Tupperware Brands stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How does Tupperware Stands against Peers?

Analyzing Tupperware Brands competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Tupperware Brands across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Tupperware Brands Competition Details

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.

Closer look at Tupperware Brands Standard Deviation

Tupperware Brands has current Standard Deviation of 15.18. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation 
=  
SQRT(V) 
 = 
15.18
SQRT = Square root notation
V =   Variance of Tupperware Brands returns
Let's now compare Tupperware Brands Standard Deviation to its closest peers:
TUP
BC
DOOO
VOXX
VUZI
TUP15.178964963438865
BC2.34
DOOO1.88
VOXX5.17
VUZI4.38
Tupperware Brands (NYSE:TUP), a leader in the Packaging & Containers industry, has seen a bullish trend in recent months, raising the question of whether this trend will continue into August. Despite the company's total debt standing at a hefty $705.4M, the current ratio of 1.33X suggests that TUP is capable of meeting its short-term obligations. The company's net assets are reported to be $952.2M, offering some level of financial stability.
However, it's worth noting that TUP reported a net income loss of $28.4M, indicating some financial strain. On a positive note, the company's EBITDA stands at $87.7M, and it has a working capital of $102.9M, indicating operational efficiency. The stock's beta of 2.15 suggests higher volatility compared to the market, which could mean potential for higher returns, but also higher risk. The company's five-year return stands at 8.52%, and the stock's PEG ratio is 1.09, indicating that the stock may be fairly valued given its growth rate. Moreover, TUP's 52-week high is $12.86, suggesting the stock has the potential for further growth. However, investors should also be aware of the company's probability of bankruptcy standing at 31.03%. In conclusion, while Tupperware Brands has shown some promising signs, it also carries notable risks. Investors should carefully consider these factors when deciding whether to invest in TUP. .

Are Tupperware Brands technical ratios showing a throwback?

The latest technical ratios of Tupperware Brands Corporation suggest a potential pullback, as the information ratio stands at 0.16. This ratio, which evaluates the risk-adjusted performance of a financial asset, indicates that the company's returns have not adequately compensated for the risk it has undertaken. This could potentially signal a decline in the stock's performance. Investors are advised to exercise caution and closely monitor the company's future financial disclosures and market trends before making investment decisions. Tupperware Brands is exhibiting above-average volatility over the chosen time frame. Investors should analyze Tupperware Brands separately to ensure that their intended market timing strategies align with their expectations about the company's volatility. Understanding different market volatility trends can often assist investors in timing the market. Proper utilization of volatility indicators allows traders to measure the risk of Tupperware Brands' stock against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly impact Tupperware Brands' stock price, adding stress to investors as they watch the value of their shares decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.

Our Final Take On Tupperware Brands

While other companies within the packaging & containers industry are still a little expensive, even after the recent corrections, Tupperware Brands may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor sell any shares of Tupperware Brands at this time. The Tupperware Brands risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Tupperware Brands.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Tupperware Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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