Trade-Ideas LLC identified Tempur Sealy International ( TPX) as a strong and under the radar 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 $96.4 million.
  • TPX has traded 499.80599999999998317434801720082759857177734375 options contracts today.
  • TPX is making at least a new 3-day high.
  • TPX has a PE ratio of 39.
  • TPX is mentioned 1.52 times per day on StockTwits.
  • TPX has not yet been mentioned on StockTwits today.
  • TPX is currently in the upper 20% of its 1-year range.
  • TPX is in the upper 35% of its 20-day range.
  • TPX is in the upper 45% of its 5-day range.
  • TPX is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TPX:

Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products worldwide. It operates through two segments, North America and International. TPX has a PE ratio of 39. Currently there are 6 analysts that rate Tempur Sealy International a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Tempur Sealy International has been 727,400 shares per day over the past 30 days. Tempur Sealy International has a market cap of $4.9 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.13 and a short float of 5.8% with 2.94 days to cover. Shares are up 46.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tempur Sealy International as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • TEMPUR SEALY INTL INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TEMPUR SEALY INTL INC increased its bottom line by earning $1.75 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($3.20 versus $1.75).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to $132.10 million or 21.75% when compared to the same quarter last year. In addition, TEMPUR SEALY INTL INC has also vastly surpassed the industry average cash flow growth rate of -83.25%.
  • 42.94% is the gross profit margin for TEMPUR SEALY INTL INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.56% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.35% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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