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Pool Corp. (POOL) Outpaces Stock Market Gains: What You Should Know

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Pool Corp. (POOL - Free Report) closed at $346.55 in the latest trading session, marking a +1.67% move from the prior day. This change outpaced the S&P 500's 0.88% gain on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 1.39%.

Coming into today, shares of the distributor of supplies for swimming pools had gained 13.55% in the past month. In that same time, the Consumer Discretionary sector gained 2.47%, while the S&P 500 gained 3.54%.

POOL will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2020. The company is expected to report EPS of $2.14, up 16.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $989.72 million, up 10.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $3.58 billion, which would represent changes of +13.28% and +11.89%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for POOL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. POOL currently has a Zacks Rank of #2 (Buy).

Investors should also note POOL's current valuation metrics, including its Forward P/E ratio of 47.01. Its industry sports an average Forward P/E of 16.55, so we one might conclude that POOL is trading at a premium comparatively.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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