Pool Corp. POOL shares ended the last trading session 6.4% higher at $410.46. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13.2% gain over the past four weeks.
Shares of Pool Corp have surged after the company posted solid first-quarter 2021 results. The company delvered record breaking net sales of more than $1 billion thereby increasing 57% year over year. Moreover, positive investor sentiments were witnessed as the company raised its 2021 earnings guidance to $11.85-$12.60 per share compared with the previous range of $9.12-$9.62. Notably, the company expects to benefit from strong demand trends and a solid backlog of projects.
Price and Consensus
This distributor of supplies for swimming pools is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of +69%. Revenues are expected to be $821.06 million, up 21.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Pool Corp., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on POOL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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