Wednesday, July 31, 2013

CoreLogic Makes an Acqusition

CoreLogic (NYSE: CLGX  ) is proceeding logically in terms of asset buys. The company announced it has signed an agreement to acquire a set of assets that compliment its core competencies. The seller is the privately held Decision Insight Information Group, and the price is $661 million.

That package includes Marshall & Swift/Boeckh, a company which CoreLogic describes as "a leading provider of residential and commercial property valuation solutions to the property and casualty insurance industry."

No. 2 is property data and analytics specialist DataQuick Information Systems, and the third acquisition is the credit and flood services operations of DataQuick Lender Solutions.

CoreLogic said it expects to realize cash tax benefits from the transaction totaling around $115 million. It anticipates the sale will be accretive to its fiscal 2013 results, and it will close during the company's Q3.

CoreLogic touted the complimentary aspects of its purchase. In the press release heralding the news, it quoted CEO Anand Nallathambi as saying that it "significantly expands our footprint in property and casualty insurance and adds additional scale to our existing property data and analytics business."

Tuesday, July 30, 2013

Chipotle Earnings Look Primed to Stay Spicy-Hot

Chipotle Mexican Grill (NYSE: CMG  ) will release its quarterly report on Thursday, and shareholders have already gotten a head-start on celebrating, with shares starting to approach levels not seen since last summer. But will the burrito giant be able to keep investors happy this time around, or will its shares plunge again as they did a year ago?

For Chipotle, it's not a matter of whether earnings will grow but rather how much they'll grow, as the chain has tapped into the trend toward healthier foods and limited-menu options that emphasize the company's strengths. Let's take an early look at what's been happening with Chipotle over the past quarter and what we're likely to see in its quarterly report.

Stats on Chipotle

Analyst EPS Estimate

$2.81

Change From Year-Ago EPS

9.8%

Revenue Estimate

$803.07 million

Change From Year-Ago Revenue

16.2%

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will Chipotle earnings get spicier this quarter?
Analysts have gotten even more optimistic in recent months about Chipotle's earnings prospects, boosting their June-quarter estimates by a nickel per share and their full-year 2013 consensus by more than $0.35 per share. The stock has also responded favorably, having risen more than 12% since early April.

Much of those share-price gains came right after Chipotle reported earnings for the first quarter in April. Even though same-store sales only managed to rise 1% and operating margins declined by more than a full percentage point, the company posted strong earnings and overall revenue growth from new restaurant locations, and more importantly gave positive guidance on future store openings toward the higher end of its previously expected range.

Still, Chipotle has looked for ways to boost its growth even further. Plans to offer premium margaritas with Patron tequila could help drive further sales, although other food chains have had mixed results from premium beverages. McDonald's (NYSE: MCD  ) , for instance, has seen a rise in customer complaints as waits in line for beverages have gotten longer.

Chipotle has also decided to expand on its ShopHouse Asian Kitchen concept, announcing last month that it would open new stores in Washington, D.C., and Los Angeles. Chipotle hasn't gone very fast with its expansion plans, but given the success of its test restaurant near Washington's Dupont Circle, ShopHouse could give Chipotle a way to grow even in areas where it already has a large number of its own namesake restaurant locations.

Another potential way that Chipotle could probably boost sales would be to raise its menu prices. Food costs have risen substantially, and McDonald's and Panera Bread (NASDAQ: PNRA  ) have both successfully pushed price hikes through to customers. At the same time, though, Chipotle doesn't want to alienate customers at a time in which sales growth is already under pressure.

In Chipotle's earnings report, watch to see how the company responds to news late last month that Jack in the Box (NASDAQ: JACK  ) would close 67 of its Qdoba restaurants, which compete against Chipotle in the Mexican food space. With its having demonstrated its superiority over its burrito rivals, Chipotle is still in a strong position to make the most of the industry's potential well into the future.

One area where Chipotle still has plenty of potential is in expanding internationally. Many other stocks have drawn a lot of success from overseas moves, and The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you some of the best examples. Click here to get your free copy before it's gone.

Click here to add Chipotle to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

U.S. Stocks Decline as Pending Home Sales Slipped in June

U.S. stocks fell, paring a monthly gain for the Standard & Poor's 500 Index, as fewer Americans signed contracts in June to buy previously owned homes.

Energy stocks and financial companies lost more than 0.7 percent for the biggest declines among 10 industries in the S&P 500. Perrigo Co. fell 6.8 percent after saying it will buy Irish drugmaker Elan Corp. for $8.6 billion. Facebook Inc. (FB) gained 4.2 percent to the highest price since May 2012, the month of its public offering, amid optimism over mobile ad sales.

The S&P 500 slipped 0.4 percent to 1,685.33 at 4 p.m. in New York. The equity benchmark lost less than 0.1 percent last week, halting its longest streak of weekly gains since May 17. The Dow Jones Industrial Average dropped 36.86 points, or 0.2 percent, to 15,521.97 today. About 5.19 billion shares changed hands, 18 percent below the three-month average.

"Some of the economic data appears softer than we anticipated," Eric Teal, who helps oversee $5 billion as chief investment officer at First Citizens BancShares Inc., said via phone from Raleigh. "Some pause might be in order over the next few months after the strong gains the first half of the year."

The S&P 500 has climbed 4.9 percent this month. The benchmark index surged 149 percent since March 2009, driven by better-than-estimated corporate earnings and three rounds of bond purchases by the U.S. central bank. The gauge fell in June, after seven consecutive months of gains, as investors examined economic data to assess when the Federal Reserve will reduce its $85 billion of monthly bond purchases.

Fed Timing

The Fed has said economic data will determine the timing and pace of any reduction in its asset purchases. The central bank will probably maintain its benchmark interest rate at 0.25 percent after concluding its two-day policy-setting meeting on July 31, economists predicted. The Fed will begin to reduce its bond-purchase program in September, according to economist! s surveyed by Bloomberg.

Best Clean Energy Stocks To Own For 2014

Fewer Americans signed contracts in June to buy previously owned homes, showing rising mortgage rates are beginning to restrain the housing market. The index of pending home sales dropped 0.4 percent, less than forecast, to 110.9 in June after climbing a month earlier to the highest level since December 2006, figures from the National Association of Realtors showed today in Washington. The median forecast in a Bloomberg survey of 40 economists called for a 1 percent decline.

The week will offer further clues to the state of the economy, with the release of data on U.S. gross domestic product and the monthly labor report, as well as monetary policy announcements by the Fed and the European Central Bank.

Week Ahead

Investors will also watch this week's earnings from more than 130 companies listed on the S&P 500. Of the 269 companies in the S&P 500 that have posted results so far this earnings season, 73 percent have exceeded analysts' estimates for profit and 56 percent have beaten sales projections, data compiled by Bloomberg show.

"It's still the case that macro is driving markets at the moment," Ramin Nakisa, an asset allocation strategist at UBS AG in London, told Francine Lacqua on Bloomberg Television. "We are entering a world in which rates are rising, and the Fed's going to taper. There may be higher volatility, but there will be a bigger appetite for risk. Now we're seeing a rotation into cyclicals, so markets are saying we want growth."

The Chicago Board Options Exchange Volatility Index, or VIX, climbed 5.3 percent to 13.39, after adding 1.4 percent last week. The equity volatility gauge reached its highest level this year in June and has since fallen 35 percent.

Financial Stocks

Energy and financial stocks fell 0.8 percent each. Exxon Mobil Corp. slipped 0.8 pe! rcent to ! $94.03 and Chevron Corp. slumped 1.1 percent to $126.17. Bank of America Corp. lost 1.4 percent to $14.52 for the biggest decline in the Dow (INDU) while JPMorgan Chase & Co. declined 0.6 percent to $55.69.

Chesapeake Energy Corp., the second-biggest U.S. natural-gas producer after Exxon, dropped 0.4 percent to $22.75. Gas futures slumped in New York to the lowest price in 21 weeks on forecasts for mild weather, after tropical storm Dorian fell apart in the Atlantic.

Perrigo lost 6.8 percent to $125.17 today. The maker of over-the-counter medicines will pay holders of Elan's American depositary receipts $16.50 per ADR in cash and stock, according to a joint statement today. That's 11 percent greater than the July 26 closing price for the ADRs. Elan rose 3.6 percent to $15.46 in U.S trading.

Omnicom, Publicis

Omnicom Group Inc. slipped 0.6 percent to $64.75, reversing an earlier rally of as much as 8.3 percent, after agreeing to merge with Publicis to create a company with revenue of $23 billion and a market value of $35 billion. The shareholders of Publicis and Omnicom will each hold about 50 percent of the new entity, Publicis Omnicom Group.

The combined business will use its scale to negotiate better advertising rates for its clients. Publicis's Chief Executive Officer Maurice Levy and Omnicom's CEO John Wren will jointly run Publicis Omnicom.

Interpublic Group of Cos. jumped 4.7 percent to $16.61.

AT&T Inc. rose 0.8 percent to $35.88 as phone stocks advanced the most in the S&P 500.

Saks Inc. added 4.2 percent to $15.95. Toronto-based Hudson's Bay Co. will buy the luxury department-store retailer for $16 a share in cash, or $2.4 billion, according to a joint statement today.

Facebook Rallies

Facebook gained 4.2 percent to $35.43, the highest price since the month of its initial public offering. The world's largest social network last week reported that ads on smartphones and tablets generated 41 percent of reven! ue in the! second quarter, up from 14 percent a year earlier.

Caterpillar Inc. rose 1.2 percent to $83.02 for the biggest gain in the Dow. The largest maker of mining equipment said it will buy back $1 billion of common stock from Societe Generale.

Pfizer Inc. added 0.6 percent to $29.54. The world's biggest drugmaker said it will split up its three major internal businesses and shuffle the management that leads them, part of the company's preparation for a further break up.

Synta Pharmaceuticals Corp. (SNTA) soared 41 percent to $7.15 for the biggest gain in more than four years. A small trial of its drug in breast cancer met goals warranting expansion of the study.

Biggest Industry

U.S. financial companies, fueled by the fastest earnings growth in the S&P 500, are poised to reclaim their position as the market's biggest industry for the first time since the credit crisis.

Banks, brokers and insurance companies make up 16.8 percent of the S&P 500, almost double the level from 2009 and closing in on technology companies at 17.6 percent, according to data compiled by Bloomberg. Bank of America and Morgan Stanley are helping lead gains in the index this month after profits topped analyst estimates. Intel Corp. and Microsoft Corp. are among the worst after earnings trailed forecasts.

For bulls, the change signals banks will lead the economy even after the Fed begins to reduce stimulus. Bears say S&P 500 profits would be down this quarter if not for banks. They note that the last time financials were the biggest industry was in 2008 and the consequences were disastrous.

"The fact that we are seeing banks perform reasonably well provides a certain sense of confidence in the underlying economy," Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $130 billion, said in a July 25 phone interview. "Without the financials working, it would be hard to imagine that all the rest would! be worki! ng at all."

Monday, July 29, 2013

3 Energy Stocks to Light a Fire Under Your Portfolio

As energy takes on more of a global focus, so do the stocks of the companies that produce it. With the increase in hydraulic fracturing, or fracking, places once thought of as flyover states are now booming industrial areas because of the new ability to uncover deep underground stores of oil and natural gas. There's a lot of room for excavation and discovery in these areas, and companies such as Chesapeake Energy (NYSE: CHK  ) , WPX Energy (NYSE: WPX  ) , and InterOil (NYSE: IOC  ) are taking full advantage.

Chesapeake Energy
Chesapeake, an Oklahoma-based oil and natural gas producer, has been putting up some strong numbers recently. Revenue has been climbing in the past two quarters, marking year-over-year growth of 40% and 32%, respectively. The company has also earned $0.30 per share over that period, beating estimates of $0.25.

CHK Revenue Quarterly YoY Growth Chart

CHK Revenue Quarterly YoY Growth data by YCharts.

With large stakes in the Eagle Ford and the Greater Anadarko Basin, Chesapeake has been able to vastly increase its oil production. The Eagle Ford in Texas alone has the potential to produce about 420,000 barrels per day. Chesapeake ramped up first-quarter production this year by 56%, which brought about its 40% year-over-year revenue growth. The company has already cemented itself as one of the industry's top producers, and if it can keep increasing production and decreasing costs the way it's been doing, the stock price will keep climbing at sharper angles.

WPX Energy
WPX is a greenhorn in the oil and natural gas industry with a whole lot of potential. In the U.S., it has exploration rights in the Piceance Basin, Bakken Shale, Marcellus Shale, Powder River Basin, and San Juan Basin. With all of that territory, WPX has plenty of room to run, and its stock price, which has been climbing to all-time highs, reflects that sentiment. Yet despite the recent uptrend in the market and in the individual stocks of Chesapeake and WPX, both companies are still trading well below book value.

CHK Price / Book Value Chart

CHK Price / Book Value data by YCharts.

Chesapeake's and WPX's revenues are highly correlated with the prices of natural gas. Unfortunately for them, the commodity is priced at rock-bottom levels right now. On the other hand, that could also mean major upside potential for when prices start to rise. Despite poor revenues and profit margins of late, WPX could well be a sleeping stock ready to skyrocket in the future.

InterOil
Both Chesapeake and WPX are primarily upstream companies; they get the oil and natural gas out of the ground and sell it. InterOil engages in the oil exploration and extraction business as well, but it also expands into the midstream (refined oil and natural gas liquefaction) and downstream (retail distribution of refined products) processes. The added diversification that InterOil's many business operations give it may make the company a good play in a market with highly fluctuating commodity prices.

IOC Revenue Quarterly YoY Growth Chart

IOC Revenue Quarterly YoY Growth data by YCharts.

InterOil has been enjoying solid revenue growth. Being able to not only explore and draw the resources from the ground but also to refine and sell them is a significant advantage. The company has seen year-over-year revenue growth in six of the past seven quarters, with the single outlying quarter marking just a 1% revenue contraction. It helps that InterOil has increased its refinery operating capacity for three consecutive years and has been able to expand sales of refined products, largely because of growth in aviation sales and retail businesses.

Fill 'er up
Energy stocks can be a great way to diversify portfolios and gain exposure to commodities, since their performance is highly correlated. It's worth noting that the correlation can also make companies in the industry highly volatile, as we've seen in the recent past. But if you tread carefully here, you could light a fire under your portfolio, as all three of these stocks have solid earnings and high potential for future growth.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

Sunday, July 28, 2013

Hot Value Stocks For 2014

Aesthetic-laser maker Cynosure (NASDAQ: CYNO  ) announced yesterday that it had completed the acquisition of rival laser specialist Palomar Medical Technologies for $146 million cash and 6 million shares for a total value of around $294 million.

The combined company will have an installed base of more than 20,000 aesthetic-laser systems worldwide, with a distribution network that spans more than 100 countries. The two laser makers had combined revenues of�$234 million in 2012, with�52% of their product revenue coming from�North America�and 48% originating from international markets.

Cynosure Chairman and CEO�Michael Davin said: "We believe the acquisition complements our product portfolio and customer base, provides new product and service revenues, strengthens our global distribution network, opens new cross-selling opportunities, and enhances our intellectual property position."

Hot Value Stocks For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Robert Holmes]

     Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

    "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

    Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

  • [By Kathy Kristof]

    Headquarters: Houston

    52-Week High: $79.38

    52-Week Low: $56.86 

    Annual Sales: $39.5 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 

    With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

Hot Value Stocks For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Dave Friedman]

    The shares closed at $91.37, up $1.56, or 1.74%, on the day. They have traded in a 52-week range of $63.34 to $116.55. Volume today was 10,450,473 shares, against a 3-month average volume of 9,960,260 shares. Its market capitalization is $59.03billion, its trailing P/E is 15.11, its trailing earnings are $6.05 per share, and it pays a dividend of $1.84 per share, for a dividend yield of 2.00%. About the company: Caterpillar Inc. designs, manufactures, and markets construction, mining, agricultural, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.

  • [By Jim Cramer,TheStreet]

    Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

    Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

    Still a fantastic mineral play and a terrific call on world growth.

  • [By Sam Collins]

    Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

    Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

    Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

Top 5 Growth Companies To Watch For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Sam Collins]

    Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

    Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Hot Value Stocks For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Sam Collins]

    Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

    S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

    Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.