Tempur-Pedic International Inc. (TPX): Today's Featured Consumer Durables 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 Durables industry lower today making it today's featured Consumer Durables laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Tempur-Pedic International fell $0.76 (-1.6%) to $47.14 on light volume. Throughout the day, 1,176,082 shares of Tempur-Pedic International exchanged hands as compared to its average daily volume of 1,583,400 shares. The stock ranged in price between $46.89-$48.24 after having opened the day at $47.75 as compared to the previous trading day's close of $47.90. Other companies within the Consumer Durables industry that declined today were: Kid Brands ( KID), down 8.1%, Virco Manufacturing Corporation ( VIRC), down 4.6%, Stanley Furniture Company ( STLY), down 4.3% and Entertainment Gaming Asia ( EGT), down 2.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $2.8 billion and is part of the consumer goods sector. The company has a P/E ratio of 45.0, above the S&P 500 P/E ratio of 17.7. Shares are up 52.1% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Tempur-Pedic International a buy, no analysts rate it a sell, and 7 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 revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation.

On the positive front, Appliance Recycling Centers Of America ( ARCI), down 8.7%, Leapfrog ( LF), down 4.5%, Diebold Incorporated ( DBD), down 4.1% and Steinway Musical Instruments ( LVB), down 3.6% , were all gainers within the consumer durables industry with Xerox Corporation ( XRX) being today's featured consumer durables industry leader.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you liked this article you might like

Stocks Mostly Lower in Cautious Trading, Apple Slips on Downgrade

Stocks Under Pressure After London Terror Attacks, Apple Downgrade

Stocks to Retreat From Records at the Open After London Terror Attacks

Insiders Are Loading Up on Kite Pharma, Cliffs Natural Resources and More