Below are the three companies in the Home Furnishings industry with the highest operating margins. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.

Tempur-Pedic International ranks highest with a an operating margin of 25.2%. Following is Sealy with a an operating margin of 11.3%. Leggett & Platt ranks third highest with a an operating margin of 7.6%.

Ethan Allen Interiors follows with a an operating margin of 7.4%, and Mohawk Industries rounds out the top five with a an operating margin of 6.3%.

SmarTrend recommended that subscribers consider buying shares of Sealy on October 27th, 2011 as our technology indicated a new Uptrend was in progress when shares hit $1.61. Since that recommendation, shares of Sealy have risen 20.2%. We continue to monitor Sealy for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.