Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Tempur Sealy International ( TPX) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Tempur Sealy International as such a stock due to the following factors:
- TPX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $57.1 million.
- TPX is down 2.4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TPX with the Ticky from Trade-Ideas. See the FREE profile for TPX NOW at Trade-Ideas More details on TPX: Tempur Sealy International, Inc. engages in the manufacture, marketing, and distribution of bedding products in North America and internationally. The company offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products. The stock currently has a dividend yield of 4.1%. TPX has a PE ratio of 75.6. Currently there are 5 analysts that rate Tempur Sealy International a buy, no analysts rate it a sell, and 7 rate it a hold. The average volume for Tempur Sealy International has been 1.5 million shares per day over the past 30 days. Tempur Sealy International has a market cap of $2.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 2.28 and a short float of 20.9% with 5.97 days to cover. Shares are up 36.9% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Tempur Sealy International as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and weak operating cash flow. Highlights from the ratings report include:
- Compared to other companies in the Household Durables industry and the overall market, TEMPUR SEALY INTL INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- TPX's very impressive revenue growth greatly exceeded the industry average of 23.1%. Since the same quarter one year prior, revenues leaped by 100.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 42.33% is the gross profit margin for TEMPUR SEALY INTL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.24% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 105.5% when compared to the same quarter one year ago, falling from $29.12 million to -$1.60 million.
- You can view the full Tempur Sealy International Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.