8. Tempur-Pedic ( TPX) sells premium bedding products worldwide. Its trailing four-quarter sales have grown 23% and its net income has more than doubled. Second-quarter profit surged 99% to $34 million as earnings per share more than doubled to 46 cents, helped by a smaller float. Revenue advanced 42%. The operating margin extended from 16% to 20%. Tempur-Pedic's stock trades at a trailing earnings multiple of 18 and a forward earnings multiple of 13, 74% and 61% discounts to household durables industry averages. Its PEG ratio of 0.2 indicates an 80% discount to fair value. KeyBank ( KEY) forecasts that the stock will advance 34% to $40.

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