Pool (POOL) Hits New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Pool as such a stock due to the following factors:
- POOL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.0 million.
- POOL has traded 1,379 shares today.
- POOL is trading at a new lifetime high.
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More details on POOL:
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia. The company offers approximately 160,000 national brand and its own-branded products. The stock currently has a dividend yield of 1.3%. POOL has a PE ratio of 28.6. Currently there are no analysts that rate Pool a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Pool has been 183,800 shares per day over the past 30 days. Pool has a market cap of $3.0 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.93 and a short float of 2.8% with 6.05 days to cover. Shares are up 11% year-to-date as of the close of trading on Friday.
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Analysis:
rates Pool as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- POOL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, POOL CORP increased its bottom line by earning $2.43 versus $2.03 in the prior year. This year, the market expects an improvement in earnings ($2.82 versus $2.43).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Distributors industry. The net income increased by 55.9% when compared to the same quarter one year prior, rising from -$4.98 million to -$2.20 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.9%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Distributors industry and the overall market, POOL CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 65.08% to $84.60 million when compared to the same quarter last year. In addition, POOL CORP has also vastly surpassed the industry average cash flow growth rate of -5.30%.
- You can view the full Pool Ratings Report.
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