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

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Pool Corp. (POOL - Free Report) closed the most recent trading day at $410.80, moving -0.2% from the previous trading session. This change lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the distributor of supplies for swimming pools had gained 2.94% over the past month, outpacing the Consumer Discretionary sector's gain of 2.58% and the S&P 500's gain of 0.1% in that time.

Pool Corp. will be looking to display strength as it nears its next earnings release. On that day, Pool Corp. is projected to report earnings of $7.40 per share, which would represent year-over-year growth of 16.17%. Our most recent consensus estimate is calling for quarterly revenue of $2.12 billion, up 18.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.50 per share and revenue of $6.33 billion, which would represent changes of +21.87% and +19.49%, respectively, from the prior year.

Any recent changes to analyst estimates for Pool Corp. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 Corp. is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Pool Corp. is holding a Forward P/E ratio of 22.25. Its industry sports an average Forward P/E of 8.91, so we one might conclude that Pool Corp. is trading at a premium comparatively.

Investors should also note that POOL has a PEG ratio of 2.23 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. POOL's industry had an average PEG ratio of 0.99 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.

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


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