Midcap Watch: Tupperware

With apologies to Ice T, Tupperware Brands (TUP) may never be cool, but the company is on a roll these days. Worldwide, the Orlando-based firm has amassed an army of 2.1 million "consultants" who launch a party, on average, every 2.5 seconds. Sales rose 14 percent last year, to a record $2 billion, and profits soared 26 percent, to $2.25 a share. Perhaps most remarkably, much of the growth is occurring overseas, driven by markets like South Korea and Russia, where homemakers serve up kimchi and borscht. "The emerging markets we've invested in are just kicking butt," says CEO Rick Goings.

Tupperware's prospects look promising in the U.S., too. The company's direct-sales model thrives during downturns, as unemployment rises and more women start home businesses. Sales of food-storage containers typically grow during recessions, as families eat in more and need someplace to stash leftovers. The containers have been redesigned to be more microwave friendly, too; they now come with vents to release steam during cooking. Moreover, the company has branched out into other kitchen gear, like fry pans and salad spinners, and since 2005 has sold beauty products and cosmetics (following its acquisition of several Sara Lee beauty brands). "It's a more attractive, diversified product line," says Doug Lane, an analyst with Jefferies & Co.

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