Tempur-Pedic International Inc. (TPX): Today's Highlighted Consumer Goods Leader

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 was unchanged today. By the end of trading, Tempur-Pedic International rose 86 cents (1.9%) to $46.31 on light volume. Throughout the day, 1.2 million shares of Tempur-Pedic International exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $45.34-$47.15 after having opened the day at $45.34 as compared to the previous trading day's close of $45.45. Other companies within the Consumer Goods sector that increased today were: Castle Brands Incorporated ( ROX), up 10.6%, CTI Industries Corporation ( CTIB), up 8.4%, Mannatech ( MTEX), up 7.3%, and Summer Infant ( SUMR), up 7.1%.
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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 $2.78 billion and is part of the consumer durables industry. Currently there are five analysts that rate Tempur-Pedic International a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Tempur-Pedic International as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and weak operating cash flow.

On the negative front, Central European Distribution ( CEDC), down 16.7%, SGOCO Group ( SGOC), down 7.5%, Tandy Brands Accessories ( TBAC), down 4.3%, and China Xiniya Fashion ( XNY), down 3.9%, were all laggards within the consumer goods sector with Companhia de Bebidas das Americas Ambev ( ABV) 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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