Tempur-Pedic: Money in the Mattress after Hurricanes
09/08/2017 2:53 am EST
I am recommending the purchase of shares of Tempur-Pedic International (TPX), a leading manufacturer of mattresses and bedding related products, notes Joe Duarte, technical expert and editor of In The Money Options.
Tempur-Pedic shares have been slowly gaining ground over the last few months. The stock is now under aggressive accumulation and seems set to break out above long term consolidation patterns., and seem to be ready for a breakout.
Perhaps this has been boosted by Hurricane Harvey, but more likely it is being aided by a couple of brokerage house upgrades both on expectations of higher margins as the company regains recently lost sales from a retailer that has returned.
Add the potential replacement cycle related to Houston’s hurricane damage and the stock has the potential for a 10% gain in the next few weeks.
A move above $62 could take this stock to the $70 area in the next few weeks barring a major external event. Buy Tempur-Pedic Inc. up to $63. Sell this stock if shares close below $59.