We’re adding two new picks that were recently upgraded on the Weiss Performance Rankings. That signals a “Buy,” and they look ripe for potential profits, suggests Tony Sagami, editor of Weiss Ultimate Portfolio.
Crocs (CROX) and Tempur Sealy (TPX) have both moved to the top of the Weiss Performance Rankings and are primed to move higher. We need to add them to our portfolio right away.
You’ll never catch me in a pair of Crocs because they’re just not my style, but there are hundreds of millions of people around the world who love these cushy, comfortable sandals.Crocs first debuted in 2002, and the company’s sold over 700 million pairs of its soft sandals since.
In 2020 alone, Crocs sold 69 million pairs! Unless you live in Siberia, you’ve seen thousands of feet wearing Crocs’ colorful footwear. The company dominates the sandal market, has a cult-like fan base and is rapidly expanding their market share all over the world.
In the most recent quarter, revenues increased by 73% and profits skyrocketed by a staggering 163% on a year-over-year basis:
Source: Seeking Alpha
That wasn’t a one-quarter blip either; Crocs has been consistently growing its revenues for the past five years:
Source: Seeking Alpha
The best thing about that growth is that Crocs has an amazing 63% profit margin! That’s stratospheric! And, it will translate into even more gains down the road. CROX is up 2,253% over the past five years, and I see no slowdown in sight.
Tempur-Pedic and Sealy are two of the best-recognized mattress brands in the world. And they’re prospering from the nest-at-home boom that’s driving the demand for things like swimming pools, home remodels and upgraded home furnishings.
Yes, TPX is actually benefiting from the COVID-19 pandemic … and boy is business booming. For the third quarter, TPX delivered better-than-expected sales and profits:
- Revenues of $1.36 billion, $30 million more than Wall Street was expecting
- Profits of 87 cents per share, 3 cents above expectations
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Recent TPX EPS results, Source: MarketBeat
That’s impressive — but those numbers could have been even higher, but it couldn’t make mattresses fast enough to keep up with demand. Best of all, TPX increased its full-year profit forecast from $1.91 to $3.20 to $3.30, which is a 70% increase from the $1.91 it made in 2020!
A big part of the 2022 enthusiasm is an upcoming release of a new product line: the Ergo Smart Base Sleeptracker-AI. This new bedding system will be the first and only mattress that automatically detects and responds to snoring.
Source: Duckduckgo.com
This high-tech mattress employs sound-activated sensors and an artificial intelligence (AI) system to sense snoring, and automatically raises the sleeper’s head to a position that reduces snoring.
How many housewives who suffer from their husbands snoring are going to buy one of these high-tech, high-priced, high-profit mattresses? Zillions! Overall, Tempur Sealy International is turning "zzzs" into "$$$s".
