Back to top

Image: Bigstock

Pool Corp. (POOL) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Pool Corp. (POOL - Free Report) closed at $496.89 in the latest trading session, marking a -0.07% move from the prior day. This change lagged the S&P 500's 0.03% loss on the day.

Coming into today, shares of the distributor of supplies for swimming pools had gained 2.15% in the past month. In that same time, the Consumer Discretionary sector gained 3.35%, while the S&P 500 gained 3.59%.

POOL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.87, up 42.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 20.05% from the year-ago period.

POOL's full-year Zacks Consensus Estimates are calling for earnings of $14.14 per share and revenue of $5.07 billion. These results would represent year-over-year changes of +67.93% and +28.89%, respectively.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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).

In terms of valuation, POOL is currently trading at a Forward P/E ratio of 35.17. For comparison, its industry has an average Forward P/E of 10.82, 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 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow POOL in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Pool Corporation (POOL) - free report >>

Published in