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Is Tempur Sealy (TPX) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Tempur Sealy (TPX). TPX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.11, while its industry has an average P/E of 15.32. Over the past year, TPX's Forward P/E has been as high as 16.25 and as low as 11.80, with a median of 13.45.

TPX is also sporting a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TPX's PEG compares to its industry's average PEG of 0.58. TPX's PEG has been as high as 0.88 and as low as 0.36, with a median of 0.61, all within the past year.

Finally, investors should note that TPX has a P/CF ratio of 11.97. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.18. Over the past 52 weeks, TPX's P/CF has been as high as 15.24 and as low as 10.06, with a median of 12.23.

Value investors will likely look at more than just these metrics, but the above data helps show that Tempur Sealy is likely undervalued currently. And when considering the strength of its earnings outlook, TPX sticks out at as one of the market's strongest value stocks.


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