One of the Hottest Stocks on Wall Street Isn’t A Tech Name
More people eating at home and enthusiasm about a corporate turnaround campaign have made Tupperware Brands Corp. one of the hottest stocks on Wall Street.
Tupperware shares have soared 345% in the third quarter, giving it the biggest gain in the S&P 1500 Composite Index, which includes far more celebrated stocks like Amazon.com Inc. and Clorox Co. And the rally isn’t over, according to analysts.
The coronavirus pandemic has helped boost sales of kitchenware, including everything from storage containers to baking sets. Also, efforts to convert in-home parties to digital virtual parties during the isolation period have paid off. Last quarter, 15% of Tupperware’s total U.S. sales were through the e-commerce tool, and in June shipments were the highest for any month in nearly 20 years, the company said.
Much of the success is also attributed to the reorganization and cost-cutting initiatives undertaken by Chief Executive Officer Miguel Fernandez, who took over in April. Orlando, Florida-based Tupperware cut costs by more than $60 million in the second quarter, and ultimately expects to slash about $180 million in total annual expenses this year.
“We are becoming a leaner and more centrally organized company,” Vice Chairman Rich Goudis said on the company’s second-quarter earnings call in late July.