Tempur-Pedic International Inc. (TPX): Today's Featured Consumer Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Tempur-Pedic International ( TPX) pushed the Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Tempur-Pedic International fell 66 cents (-2.5%) to $25.82 on light volume. Throughout the day, 740,316 shares of Tempur-Pedic International exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $25.71-$26.63 after having opened the day at $26.56 as compared to the previous trading day's close of $26.48. Other companies within the Consumer Goods sector that declined today were: Star Scientific ( STSI), down 27.3%, Virco Manufacturing Corporation ( VIRC), down 12.1%, SGOCO Group ( SGOC), down 10.6%, and Leapfrog ( LF), down 10.3%.
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Tempur-Pedic International Inc. engages in the manufacture, marketing, and distribution of bedding products in North America and internationally. It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products. Tempur-Pedic International has a market cap of $1.56 billion and is part of the consumer durables industry. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are down 50.2% year to date as of the close of trading on Friday. Currently there are four analysts that rate Tempur-Pedic International a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Tempur-Pedic International as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Ever-Glory International Group ( EVK), up 30.8%, Mannatech ( MTEX), up 14.6%, Exceed Company ( EDS), up 13.8%, and Tufco Technologies ( TFCO), up 13.6%, were all gainers within the consumer goods sector with Deckers Outdoor Corporation ( DECK) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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