Pool Corp. (POOL - Free Report) closed at $359.44 in the latest trading session, marking a -0.26% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the distributor of supplies for swimming pools had gained 18.43% over the past month, outpacing the Consumer Discretionary sector's gain of 1.53% and the S&P 500's gain of 2.55% in that time.
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, the Zacks Consensus Estimate for revenue is projecting net sales of $989.72 million, up 10.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.25 per share and revenue of $3.58 billion. These totals would mark changes of +13.28% and +11.89%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for POOL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. POOL is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, POOL is currently trading at a Forward P/E ratio of 49.71. For comparison, its industry has an average Forward P/E of 16.6, which means POOL is trading at a premium to the group.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.