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Should You Consider Adding Tempur Sealy International (TPX) to Your Portfolio?

The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted mixed results in 2024. The portfolio fell 5.9% (6%.0 net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Both stock selection and sector exposure led the portfolio to lag relative to the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

The London Company Mid Cap Strategy highlighted stocks like Tempur Sealy International, Inc. (NYSE:TPX) in the second quarter 2024 investor letter. Tempur Sealy International, Inc. (NYSE:TPX) designs, manufactures and distributes bedding products. The one-month return of Tempur Sealy International, Inc. (NYSE:TPX) was 3.34%, and its shares gained 4.94% of their value over the last 52 weeks. On August 6, 2024, Tempur Sealy International, Inc. (NYSE:TPX) stock closed at $48.23 per share with a market capitalization of $8.374 billion.

The London Company Mid Cap Strategy stated the following regarding Tempur Sealy International, Inc. (NYSE:TPX) in its Q2 2024 investor letter:

Initiated: Tempur Sealy International, Inc. (NYSE:TPX) – TPX is the leader in the mattress industry. Mattress volume has stabilized in recent months. Stable volume along with pricing gains have led to higher revenue for TPX. In 2023, the company announced plans to acquire Mattress Firm, which has the potential to be materially accretive and strengthen the company’s overall competitive position. Valuation remains attractive, and TPX’s robust free cash flow generation, strong brand equity, and solid management execution support our investment thesis. We have owned the stock for many years in our Small Cap portfolio.

A satisfied customer sleeping on a comfortable bed, bedding products laid out on the bed.

Tempur Sealy International, Inc. (NYSE:TPX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Tempur Sealy International, Inc. (NYSE:TPX) at the end of the first quarter which was 49 in the previous quarter. In the first quarter, Tempur Sealy International, Inc. (NYSE:TPX) reported consolidated net sales of approximately $1.2 billion and adjusted earnings per share of $0.50. While we acknowledge the potential of Tempur Sealy International, Inc. (NYSE:TPX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Tempur Sealy International, Inc. (NYSE:TPX) and shared The London Company Small Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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Next Big AI Investment Found

In my 25 years as an investing advisor, I have seen a market opportunity that has quite as much potential as the AI megatrend… and, within that trend, I have never seen a company quite as spectacular as the one I am about to put before you.

You’ve seen the tremendous potential of AI stocks over the last 18 months — in fact, AI stocks have created generational wealth practically overnight.

In the face of recent market volatility and the impact of Japan’s unexpected rate hike in late July/early August, AI stocks are still strong performers, with some investors seeing triple-digit gains.

A few of the top performing AI stocks include household names like:

  • Nvidia (NYSE: NVDA): Nvidia has been the most visible winner in the AI sector over the last year, thanks to its cutting-edge graphics processing units (GPUs) and AI chips and first mover advantage. The company’s stock has seen gains of more than 223.67% from June 2023.
  • Palantir Technologies (NYSE: PLTR): Known for its big data analytics and deep connections with the defense sector, Palantir has seen massive growth in both government and commercial revenues. The company’s stock has soared by 263.4% in the last 18 months.
  • Symbotic (NASDAQ: SYM): This AI-enabled robotics company has shown impressive growth as well. The company has recently reported significant revenue increases and a sizeable backlog of projects… and investors are responding. Its stock shot up by 244.47% since December 2022.

But, in my opinion, those “household names” are just the tip of the iceberg… which is why I’m recommending that my subscribers begin their due diligence immediately on the company I am about to reveal.

Click to continue reading…