What Is Pool Corporation's (NASDAQ:POOL) Share Price Doing?
NASDAQ:POOL). The company’s shares received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Pool’s outlook and valuation to see if the opportunity still exists.” data-reactid=”28″>Let’s talk about the popular Pool Corporation (NASDAQ:POOL). The company’s shares received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on Pool’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Pool ” data-reactid=”29″> Check out our latest analysis for Pool
What’s the opportunity in Pool?
According to my price multiple model, where I compare the company’s price-to-earnings ratio to the industry average, the stock currently looks expensive. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 46.66x is currently well-above the industry average of 23.74x, meaning that it is trading at a more expensive price relative to its peers. Another thing to keep in mind is that Pool’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards the levels of its industry peers over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard for it to fall back down into an attractive buying range again.
What does the future of Pool look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 27% over the next couple of years, the future seems bright for Pool. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
we’ve identified 3 warning signs with Pool, and understanding them should be part of your investment process.” data-reactid=”53″>In light of this, if you’d like to do more analysis on the company, it’s vital to be informed of the risks involved. In terms of investment risks, we’ve identified 3 warning signs with Pool, and understanding them should be part of your investment process.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Pool, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”59″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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