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

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 higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.1%. By the end of trading, Tempur-Pedic International rose 44 cents (1.7%) to $26.65 on average volume. Throughout the day, 2.3 million shares of Tempur-Pedic International exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $26.04-$26.88 after having opened the day at $26.26 as compared to the previous trading day's close of $26.21. Other companies within the Consumer Goods sector that increased today were: Accuride ( ACW), up 10.4%, Ocean Bio-Chem ( OBCI), up 10%, Mannatech ( MTEX), up 9.6%, and STR Holdings ( STRI), up 8.2%.
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Tempur-Pedic International Inc. manufactures, markets, and distributes 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 $1.57 billion and is part of the consumer durables industry. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are down 49.7% year to date as of the close of trading on Thursday. 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 a generally disappointing performance in the stock itself, weak operating cash flow and feeble growth in the company's earnings per share.

On the negative front, Global-Tech Advanced Innovations ( GAI), down 6.7%, Appliance Recycling Centers ( ARCI), down 6.7%, Ever-Glory International Group ( EVK), down 6.4%, and Central European Distribution ( CEDC), down 5.3%, were all laggards within the consumer goods sector with Under Armour ( UA) being today's consumer goods sector laggard.

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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