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Tempur Sealy International’s stock (NYSE: TPX), a manufacturer, marketer, and distributor of premium mattresses and pillows, has increased around 11% over the last twenty-one trading days (one month) and currently stands at roughly $42. It should be noted that the broader S&P500 returned only 4% growth during the same period. Tempur’s total net sales increased 18% year-over-year (y-o-y) to $3.7 billion in 2020 and further increased by 27% y-o-y in Q1 2021. Similarly, the mattress maker’s earnings also grew 91% to $1.68 per share in 2020 and soared 121% to $0.62 in Q1 2021. Clearly, the company benefited from consumers’ increased focus on home-related spending, which accelerated as a result of the pandemic. In addition, the company also reaffirmed its guidance for fiscal 2021 with expected revenue growth of +20% and EPS growth between $2.50 to $2.70 as compared to the $2.43 consensus estimate. TPX is expected to launch its essential, Posturepedic, and Posturepedic Plus products this year – which could extend its lead as the top mattress brand in North America.
Now, is TPX stock poised to grow further? We believe the company remains fundamentally undervalued and there could be room for gains in the stock going forward. Specifically, there is a 71% chance of a rise for Tempur Sealy stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on TPX Stock Chances of Rise for more details.
Trefis
Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last 10 year data
[1] 9% or higher return during five-day period in 162 times out of 2516; Stock rose in the next 5 days in 89 of these 162 instances
[2] 14% or higher return during ten-day period in 126 times out of 2516; Stock rose in the next 10 days in 98 of these 126 instances
[3] 11% or higher return during twenty-one-day period in 522 times out of 2516; Stock rose in the next 21 days in 369 of these 522 instances
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It is helpful to see how peers stack up. TPX Stock Comparison With Peers for how Tempur Sealy compares against peers on metrics that matter.
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