Tempur Sealy International (NYSE:TPX) had been trending up for the past year but is now trading in sideways range. In this range, the stock has formed a resistance level and a support level. If the stock breaks through either the resistance or support, a big move is expected. Read more to learn how to take advantage of this trade.Tempur Sealy International (TPX) Inc is one of the world's largest bedding providers. The company develops and distributes bedding products globally through its North America and international segments.
The company had a strong first quarter as global net sales were up 27% year-over-year. These results were driven by industry strength and successful company initiatives. They would have been even stronger if not for an industry wide supply chain shortage in Innerspring and chemicals. But the Innerspring shortage is over and management expects more growth going forward.
TPX has a current ratio of 1.4 which indicates it has more than enough liquidity to handle short-term obligations. The company also has a sky-high return on equity of 132.3% which means that management is extremely efficient. Over the past five years, earnings have grown an average of 41%. Analysts expect earnings to soar 229.4% in the current quarter.