Tempur-Pedic International Inc. (TPX): Today's Featured Consumer Durables 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 Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day up 0.3%. By the end of trading, Tempur-Pedic International rose $2.10 (7.4%) to $30.60 on heavy volume. Throughout the day, 2.9 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 $28.40-$30.81 after having opened the day at $28.40 as compared to the previous trading day's close of $28.50. Other companies within the Consumer Durables industry that increased today were: Chromcraft Revington ( CRC), up 6.7%, Kid Brands ( KID), up 6.3%, Panasonic Corporation ( PC), up 5.7%, and Sony Corporation ( SNE), up 4.9%.
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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 $1.67 billion and is part of the consumer goods sector. The company has a P/E ratio of 13, below the S&P 500 P/E ratio of 17.7. Shares are down 46.7% year to date as of the close of trading on Wednesday. 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, Leapfrog ( LF), down 3.2%, Nautilus Group ( NLS), down 1.9%, Spectrum Brands Holdings ( SPB), down 1.8%, and American Woodmark Corporation ( AMWD), down 1.8%, were all laggards within the consumer durables industry with Fossil ( FOSL) being today's consumer durables industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer durables industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the consumer durables industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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