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 0.4%. By the end of trading, Tempur-Pedic International fell $0.76 (-1.5%) to $48.50 on light volume. Throughout the day, 1,019,159 shares of Tempur-Pedic International exchanged hands as compared to its average daily volume of 1,635,900 shares. The stock ranged in price between $48.30-$49.83 after having opened the day at $49.14 as compared to the previous trading day's close of $49.26. Other companies within the Consumer Goods sector that declined today were: Pitney Bowes ( PBI), down 15.6%, Fuwei Films (Holdings ( FFHL), down 8.7%, Elecsys Corporation ( ESYS), down 8.0% and Fresh Del Monte Produce ( FDP), down 7.9%.
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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 $3.0 billion and is part of the consumer durables industry. The company has a P/E ratio of 28.8, above the S&P 500 P/E ratio of 17.7. Shares are up 54.9% year to date as of the close of trading on Monday.

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 positive front, Meritor ( MTOR), down 22.1%, Companhia de Bebidas das Americas Ambev ( ABV), down 7.7%, Central European Distribution ( CEDC), down 7.7% and S&W Seed Company ( SANW), down 7.3% , were all gainers within the consumer goods sector with Green Mountain Coffee Roasters ( GMCR) 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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