June 21, 2024

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

Pool Corp. (POOL) closed at $315.10 in the latest trading session, marking a +1.61% move from the prior day. The stock outpaced the S&P 500’s daily gain of 1.6%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 2.26%.

Prior to today’s trading, shares of the distributor of supplies for swimming pools had lost 7.89% over the past month. This has lagged the Consumer Discretionary sector’s loss of 1.59% and the S&P 500’s loss of 5.3% in that time.

POOL will be looking to display strength as it nears its next earnings release. In that report, analysts expect POOL to post earnings of $2.14 per share. This would mark year-over-year growth of 16.3%. Meanwhile, our latest consensus estimate is calling for revenue of $986.35 million, up 9.78% from the prior-year quarter.

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 +11.78%, respectively, from last year.

Any recent changes to analyst estimates for POOL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. POOL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note POOL’s current valuation metrics, including its Forward P/E ratio of 42.77. Its industry sports an average Forward P/E of 14.78, 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 group has a Zacks Industry Rank of 21, putting it in the top 9% 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.