Topic: Growth Stocks

TUPPERWARE BRANDS CORP. $62 – New York symbol TUP

TUPPERWARE BRANDS CORP. $62 (New York symbol TUP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 57.4 million; Market cap: $3.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.tupperwarebrands.com) was our Stock of the Year for 2011.

Like IBM, Tupperware continues to see strong demand for its products, particularly in fast-growing countries like Brazil, Indonesia and Turkey. These markets now supply 63% of the company’s sales.

Also like IBM, Tupperware continues to aggressively repurchase its shares. Buybacks raise earnings per share and other per-share calculations, and give the remaining shareholders a larger stake in the company.

The stock is up 35.9% since we made it our #1 pick for 2011. However, Tupperware makes many of its products, including its food containers, from oil-based plastic resins. Higher oil prices could slow its earnings growth.

Even so, earnings in 2011 probably rose 21.0% to $4.50 a share. The stock trades at 13.8 times that estimate. Tupperware’s earnings in 2012 could rise 10% to $4.95 a share. That gives the stock a p/e ratio of just 12.5.

Tupperware’s annual dividend rate of $1.20 yields 1.9%. The rate will undoubtedly rise in 2012, because the company now links annual dividend hikes to increases in its earnings.

Tupperware is still a buy.

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