Buy Sleep Number, Sell Casper?
If you're dismissing mattresses as a sleepy industry (pun intended), you may want to check out Sleep Number (NASDAQ: SNBR) and Casper Sleep (NYSE: CSPR). Sleep Number is the company behind the namesake adjustable air-chambered beds that reported another blowout quarter on Wednesday afternoon. Casper Sleep is a fast-growing consumer-direct mattress seller that went public earlier this month.
Despite the hype, Casper Sleep has been a dud as a debutante. Earlier this year, Casper was expected to price its offering between $17 and $19. It had to settle for $12 two weeks ago, and even that was apparently too high. It's a broken IPO, a handful of pennies away from trading in the single digits.
Sleep Number is thankfully going the other way for its shareholders. The company that until just a couple of years ago traded as Select Comfort is trading at all-time highs. There is nothing in this week's latest financial update to make one think that the stock won't continue heading higher in the near term.
Source Fool.com
