Pool Corp. (POOL) Rating Increased to Buy at Zacks Investment Research
Pool Corp. (NASDAQ:POOL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm currently has a $111.00 price target on the stock. Zacks Investment Research’s price objective would suggest a potential upside of 11.33% from the stock’s current price.
According to Zacks, “Pool Corp.’s third-quarter 2016 earnings of $1.03 per share surpassed the Zacks Consensus Estimate of $0.99 by 4% and increased 14% year over year. The improvement was largely a result of increased revenues. Net sales of $691.4 million in the quarter marginally missed the estimates but surged 7.1% year over year. The upside was mainly driven by 5% growth in base business sales. Moreover, market share gains and stronger consumer discretionary spending further bolstered the results. Additionally, the company raised its earnings guidance for 2016. This is the third time that the company has raised its earnings outlook for 2016. The company should continue to gain in the near term from base business sales growth and favorable trends in the housing market. However, seasonality of the company’s business along with macroeconomic headwinds raises concern.”
Separately, Wedbush reiterated an “outperform” rating and issued a $109.00 target price on shares of Pool Corp. in a report on Friday, October 21st. Two equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $96.80.
Pool Corp. (NASDAQ:POOL) opened at 99.70 on Tuesday. The firm has a market capitalization of $4.12 billion, a P/E ratio of 28.98 and a beta of 0.90. Pool Corp. has a 12 month low of $72.40 and a 12 month high of $102.86. The stock’s 50 day moving average price is $94.01 and its 200-day moving average price is $94.69.
Pool Corp. (NASDAQ:POOL) last posted its earnings results on Thursday, October 20th. The company reported $1.03 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.01 by $0.02. Pool Corp. had a net margin of 5.86% and a return on equity of 58.92%. The firm earned $691.40 million during the quarter, compared to the consensus estimate of $693.02 million. During the same quarter last year, the firm earned $0.90 EPS. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. Equities analysts forecast that Pool Corp. will post $3.45 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 23rd. Shareholders of record on Wednesday, November 9th will be given a $0.31 dividend. The ex-dividend date of this dividend is Monday, November 7th. This represents a $1.24 annualized dividend and a yield of 1.24%. Pool Corp.’s dividend payout ratio is presently 35.94%.
A number of institutional investors have recently modified their holdings of POOL. Huntington National Bank boosted its position in shares of Pool Corp. by 0.5% in the second quarter. Huntington National Bank now owns 1,798 shares of the company’s stock valued at $169,000 after buying an additional 9 shares in the last quarter. Capstone Asset Management Co. boosted its stake in Pool Corp. by 0.4% in the third quarter. Capstone Asset Management Co. now owns 4,896 shares of the company’s stock valued at $463,000 after buying an additional 20 shares during the period. Great Lakes Advisors LLC boosted its stake in Pool Corp. by 1.0% in the third quarter. Great Lakes Advisors LLC now owns 3,954 shares of the company’s stock valued at $374,000 after buying an additional 41 shares during the period. McQueen Ball & Associates Inc. boosted its stake in Pool Corp. by 0.3% in the third quarter. McQueen Ball & Associates Inc. now owns 15,170 shares of the company’s stock valued at $1,434,000 after buying an additional 46 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in Pool Corp. by 3.4% in the third quarter. Tower Research Capital LLC TRC now owns 1,602 shares of the company’s stock valued at $151,000 after buying an additional 53 shares during the period. 94.10% of the stock is owned by institutional investors.
About Pool Corp.
Pool Corporation is a distributor of swimming pool supplies, equipment and related leisure products. The Company is also a distributor of irrigation and landscape products in the United States. The Company operates over 340 sales centers in North America, Europe, South America and Australia through its over four distribution networks, such as SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon) and National Pool Tile (NPT).
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