Longbow Research has initiated coverage on top mattress stocks Tempur Sealy International Inc TPX 2.24%, Mattress Firm Holding Corp MFRM 1.15% and Select Comfort Corp. SCSS 4.97%. According to analyst Mark Rupe, Tempur Sealy is the clear winner of the group.

“We believe that the company’s mid-term earnings potential exceeds what is embedded in current estimates and TPX’s current valuation,” Rupe explains.

Longbow also believes the company has significant long-term catalysts in European and Asian expansion. Longbow has a $77 price target on the stock based on 10.5x 2017 EBITDA estimates.

Longbow names Tempur Sealy a Buy, but is not quite as bullish on Neutral-rated Mattress Firm and Select Comfort.

Despite post-deal synergies from the company’s acquisition of Sleepy’s, Longbow sees Mattress Firm’s high leverage and competitive marketplace as risks looking forward. The firm believes…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!