Tupperware Brands Inc. $32 - New York symbol TUP

TUPPERWARE BRANDS CORP. $32 (New York symbol TUP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 61.8 million; Market cap: $2.0 billion; WSSF Rating: Above average) makes plastic containers for food and other items. It also makes beauty and personal care products. The company sells its products through independent dealers instead of traditional stores. In the second quarter of 2007, Tupperware’s earnings grew 36.6%, to $0.56 a share from $0.41 a year earlier. Sales grew 12.4%, to $492.9 million from $438.6 million, mainly due to strong growth in North America and Asia. If you exclude the positive impact of foreign exchange rates, per-share earnings rose 18.4%, and sales grew 8%. Tupperware is now targeting international markets for new growth. Expanding prosperity in Asia, Latin America and Eastern Europe is making Tupperware’s products more affordable. We first recommended Tupperware in our May 2007 issue at $26. That works out to a 23.1% gain. It now trades at 15.8 times its 2007 profit estimate of $2.03 a share. The $0.88 dividend yields 2.8%. Tupperware is a buy.

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