Trade-Ideas LLC identified

Tempur Sealy International

(

TPX

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tempur Sealy International as such a stock due to the following factors:

  • TPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.3 million.
  • TPX traded 232,050 shares today in the pre-market hours as of 9:00 AM, representing 16.6% of its average daily volume.

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More details on TPX:

Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products worldwide. It operates through two segments, North America and International. TPX has a PE ratio of 18. Currently there are 5 analysts that rate Tempur Sealy International a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Tempur Sealy International has been 1.5 million shares per day over the past 30 days. Tempur Sealy International has a market cap of $3.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.15 and a short float of 27.9% with 11.39 days to cover. Shares are down 10.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tempur Sealy International as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Durables industry average. The net income increased by 69.2% when compared to the same quarter one year prior, rising from $23.40 million to $39.60 million.
  • 42.80% is the gross profit margin for TEMPUR SEALY INTL INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.49% is above that of the industry average.
  • TEMPUR SEALY INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEMPUR SEALY INTL INC reported lower earnings of $1.18 versus $1.75 in the prior year. This year, the market expects an improvement in earnings ($3.90 versus $1.18).
  • TPX, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, TEMPUR SEALY INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

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