Will Pool Corp (NASDAQ:POOL) low risk outlook last untill November?

Pool Corp is currently generating 0.0135% in daily expected returns and assumes 1.3138% risk (volatility on return distribution) over the 60 days horizon. While some risk-seeking stakeholders are getting worried about consumer cyclical space, it is reasonable to summarize Pool Corp as a possible investment alternative. We will go over a few points Pool Corp stakeholders should remember regarding its volatility.
Published over a year ago
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Reviewed by Michael Smolkin

Pool Corp currently holds 658.94 M in liabilities with Debt to Equity (D/E) ratio of 0.75, which is about average as compared to similar companies. The entity has a current ratio of 2.19, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Instrument Allocation

The asset allocation of funds such as Hancock Horizon usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Hancock Horizon Burkenroad
Details

Detailed Outlook On Hancock Horizon

The firm reported the previous year's revenue of 4.83 B. Net Income was 536.62 M with profit before overhead, payroll, taxes, and interest of 1.13 B.
 2020 2021 (projected)
Consolidated Income133.74 M144.3 M
Direct Expenses2.81 B2.23 B

Pool Corp has 82 percent chance to finish above $455 in November

The variance is down to 1.81 as of today. Pool Corp has relatively low volatility with skewness of -0.08 and kurtosis of -0.24. However, we advise all investors to independently investigate Pool Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pool Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pool Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Pool Corp

While some companies in the leisure industry are either recovering or due for a correction, Pool Corp may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the new economy, it is better to hold off any trading of Pool Corp as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Pool Corp.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Hancock Horizon Burkenroad. Please refer to our Terms of Use for any information regarding our disclosure principles.

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