Pool Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>POO</div>
POOL -- USA Stock  

USD 333.59  5.31  1.62%

Pool is scheduled to announce its earnings today. The next earnings report is expected on the 11th of February 2021. As some millenniums are still trying to avoid consumer cyclical space, I will try to summarize Pool Corporation a little further in order to understand its potential as a viable investment. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Do analysts have more confidence in Pool (NASDAQ:POOL) in October?
Pool currently holds 638.7 M in liabilities with Debt to Equity (D/E) ratio of 1.31, which is about average as compared to similar companies.
What is the right price you would pay to acquire a share of Pool? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Pool Corporation this year

Annual and quarterly reports issued by Pool Corporation are formal financial statements that are published yearly and quarterly and sent to Pool stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Pool often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Pool utilizes its cash?

To perform a cash flow analysis of Pool, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Pool is receiving and how much cash it distributes out in a given period. The Pool cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Pool Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 322.36 Million

Is Pool a risky opportunity?

Let's check the volatility. Pool is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Pool (NASDAQ:POOL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Pool stock makes you a part-owner of that company.

Pool Corporation Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Pool. The Pool consensus assessment is calculated by taking the average estimates from all of the analysts covering Pool

Strong Buy
4
Hold
2
Strong Buy466.67
Buy00.0
Hold233.33
Sell00.0
Strong Sell00.0

Will Pool continue to hike?

New treynor ratio is at 1.8. Pool Corporation currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.25. However, we do advice investors to further question Pool Corporation expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

While other entities under the leisure industry are still a bit expensive, Pool may offer a potential longer-term growth to stakeholders. On the whole, as of the 22nd of October 2020, we believe Pool is currently overvalued. It barely shadows the market and projects very low chance of bankruptcy in the next two years. However, our overall 30 days buy-or-sell advice on the company is Strong Buy.

About Contributor

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 Pool Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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