How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Pool Corp. (
POOL Quick Quote POOL - Free Report) ten years ago? It may not have been easy to hold on to POOL for all that time, but if you did, how much would your investment be worth today? Pool Corp.'s Business In-Depth
With that in mind, let's take a look at Pool Corp.'s main business drivers.
Based in Covington, LA, Pool Corp. is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is a leading regional wholesale distributor of irrigation and landscape products. The company was incorporated in the State of Delaware in 1993 and grew from a regional distributor to a multi-national, multi-network distribution company.
The company reports operations under two segments — the Base Business segment (94.4% of second-quarter 2021 revenues) and the Excluded segment i.e. sale centers excluded from base business (5.6%). As of Mar 31, 2020, Pool Corp operated 400 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 national brand and private-label products to nearly 120,000 wholesale customers. The company serves five types of customers: a) swimming pool remodelers and builders, b) retail swimming pool stores, c) swimming pool repair and service businesses, d) landscape construction and maintenance contractors, and e) golf courses. Most of its customers include small, family-owned businesses.
The company offers customers products in the following categories: 1) Pool maintenance — including a wide array of chemicals, supplies and repair parts, 2) Pool construction and renovation — such as pool pumps, filters, heaters and cleaners, pool surfacing materials, pool tile, coping, deck equipment, pool control systems, lighting and above-ground pool kits, 3) Irrigation and landscape — including a complete line of commercial and residential irrigation products, landscape maintenance and equipment products and parts, 4) Outdoor living — such as outdoor lighting, grills, outdoor kitchen components and hardscape products.
Pool operates through three distribution networks: the SCP Distributors (SCP) network, the Superior Pool Products (Superior) network and the Horizon network. Swimming pool supplies, equipment and related leisure products are distributed through the SCP and Superior networks, while irrigation and landscape products are distributed through Horizon. The SCP and Superior channels are referred to as the Blue side, while Horizon is referred to as the Green side. Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Pool Corp. if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $18,956.95, or a 1,795.70% gain, as of August 18, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 272.57% and the price of gold went up -4.27% over the same time frame.
Analysts are anticipating more upside for POOL.
Shares of Pool Corp have outperformed the industry so far this year. Recently, the company reported solid second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, the top and the bottom line increased 39.6% and 64.6%, respectively, on a year-over-year basis. Notably, the company is benefitting from solid performance of base business, large market presence and strategic expansions through acquisitions. Also, it is benefitting from solid demand across heaters, pumps, filters, lighting, automation and pool remodeling. Going forward, the company is optimistic on the back of new products (such as automation and the connected pool), continuation of the de-urbanization trends and strengthening of the southern migration. For 2021, the company expects earnings per share in the range of $13.75-$14.25.
The stock is up 6.07% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2021. The consensus estimate has moved up as well.