Why Tempur-Pedic Should Buy Back Shares Now

Updated

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

Anand is bullish on Tempur-Pedic shares now that they're down significantly from their 2012 highs above $80. In fact, he extends this bullishness to Tempur-Pedic's share-buyback program. He thinks Tempur-Pedic is in a position to be aggressive with its repurchases -- something it was unable to do in 2008 and 2009, when shares sank to single digits.

Anand is rosy about Tempur-Pedic's prospects, but retail is in its largest period of transition ever. The companies left behind will lose money for investors, while the few exceptional leaders benefiting from this change will see astounding growth in the years ahead. The Motley Fool has created a free report, "The Death of Retail," which highlights two companies hand-picked by Fool analysts that are set to dominate the future. To check out these two companies and learn more about the future of retailing, click here now -- it's free!

At the time thisarticle was published Anand Chokkaveluowns shares of Tempur-Pedic International. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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