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One Way That Tempur Sealy Can Deliver Upside Of 50% For Its Stock

Nevermind the fact that Tempur Sealy's (TPX) net sales grew 21.3% to $2.99 billion in 2014, and the stock trades at just 14 times forward earnings, that still doesn't mean it's a cheap stock or presenting a good investment opportunity. Whispers of Tempur Sealy being cheap have officially began to circulate on social media channels and among retail investors, but the reality is that the company's past is irrelevant. Instead, it's the future that dictates stock performance, and Tempur Sealy's operating approach is not aligned with what it is as a company.

Next year Tempur Sealy expects to generate $3.05 to $3.15 billion in net sales, growth of 2-5% year-over-year. This makes Tempur Sealy's outlook comparable to GDP, or other large consumer brand companies. That means that Tempur Sealy needs to operate as such to increase shareholder value.

In 2014 Tempur Sealy's operating approach revolved around integrating Sealy and finding… Read More …