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Tempur Sealy (TPX) closed at $47.77 in the latest trading session, marking a +1.23% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.14%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Coming into today, shares of the mattress maker had gained 10.15% in the past month. In that same time, the Retail-Wholesale sector lost 2.19%, while the S&P 500 gained 4.32%.

Investors will be hoping for strength from Tempur Sealy as it approaches its next earnings release. The company is expected to report EPS of $0.96, up 43.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.46 billion, up 37.77% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $5.03 billion, which would represent changes of +71.2% and +36.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Tempur Sealy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Tempur Sealy is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Tempur Sealy is currently trading at a Forward P/E ratio of 14.45. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 14.45.

We can also see that TPX currently has a PEG ratio of 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Retail – Home Furnishings stocks are, on average, holding a PEG ratio of 1.08 based on yesterday’s closing prices.

The Retail – Home Furnishings industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Tempur Sealy International, Inc. (TPX): Free Stock Analysis Report
 
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