Tempur-Pedic International Inc. (TPX): Today's Highlighted Consumer Durables 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 Durables industry higher today making it today's featured consumer durables winner. The industry as a whole closed the day down 0.2%. By the end of trading, Tempur-Pedic International rose 70 cents (1.5%) to $48.22 on light volume. Throughout the day, 1.3 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 $47.17-$48.75 after having opened the day at $47.37 as compared to the previous trading day's close of $47.52. Other companies within the Consumer Durables industry that increased today were: Entertainment Gaming Asia ( EGT), up 15.4%, Industrie Natuzzi ( NTZ), up 8.9%, Hooker Furniture Corporation ( HOFT), up 3.2%, and Mattress Firm ( MFRM), up 2.9%.
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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 $2.83 billion and is part of the consumer goods sector. The company has a P/E ratio of 27.9, above the S&P 500 P/E ratio of 17.7. Shares are up 50.9% year to date as of the close of trading on Thursday. 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, Callaway Golf Company ( ELY), down 6%, Global-Tech Advanced Innovations ( GAI), down 5.6%, SGOCO Group ( SGOC), down 3.7%, and Furniture Brands International ( FBN), down 3.6%, were all laggards within the consumer durables industry with Sony Corporation ( SNE) 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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