Stephens Issues Positive Forecast for Pool (NASDAQ:POOL) Stock Price

Key Points

• Stephens raised Pool’s price target from $200 to $230 and maintained an “overweight” rating, implying 16.63% potential upside from the prior close.
• Analyst sentiment remains mixed: five analysts rate the stock Buy, five Hold, and three Sell, resulting in an overall “Hold” consensus and an average target price of $227.20.
• Pool exceeded quarterly expectations with $1.50 billion in revenue and $3.40 adjusted EPS, while reaffirming full-year adjusted EPS guidance of $10.87–$11.17; however, operating income declined 3% amid ongoing cost pressures.

Pool (NASDAQ:POOL - Get Free Report) had its price target boosted by analysts at Stephens from $200.00 to $230.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an "overweight" rating on the specialty retailer's stock. Stephens's target price suggests a potential upside of 16.63% from the company's previous close.

A number of other equities research analysts have also recently commented on the company. Deutsche Bank Aktiengesellschaft set a $185.00 target price on Pool in a research note on Friday, July 24th. Weiss Ratings reissued a "sell (d+)" rating on shares of Pool in a research report on Tuesday, August 11th. Citigroup restated an "underperform" rating on shares of Pool in a research note on Monday. Stifel Nicolaus decreased their target price on shares of Pool from $189.00 to $175.00 and set a "hold" rating for the company in a report on Tuesday. Finally, DA Davidson assumed coverage on shares of Pool in a research note on Monday, August 24th. They issued a "neutral" rating and a $210.00 target price on the stock. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $227.20.

Pool Stock Performance

Shares of NASDAQ:POOL opened at $197.21 on Friday. The company has a 50-day moving average price of $173.89 and a 200-day moving average price of $190.79. Pool has a 12 month low of $152.70 and a 12 month high of $303.40. The company has a current ratio of 2.67, a quick ratio of 0.91 and a debt-to-equity ratio of 1.05. The company has a market cap of $7.17 billion, a price-to-earnings ratio of 18.14, a price-to-earnings-growth ratio of 2.65 and a beta of 1.05.

Pool (NASDAQ:POOL - Get Free Report) last posted its earnings results on Thursday, October 22nd. The specialty retailer reported $3.40 earnings per share for the quarter, topping analysts' consensus estimates of $3.36 by $0.04. The firm had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.48 billion. Pool had a return on equity of 32.74% and a net margin of 7.40%. The business's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.39 EPS. As a group, equities analysts anticipate that Pool will post 10.94 EPS for the current year.

Institutional Investors Weigh In On Pool

A number of hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of Pool during the 2nd quarter valued at approximately $866,576,000. Bank of New York Mellon Corp bought a new stake in Pool in the second quarter worth $148,216,000. Southpoint Capital Advisors LP raised its stake in Pool by 66.7% during the first quarter. Southpoint Capital Advisors LP now owns 500,000 shares of the specialty retailer's stock valued at $101,165,000 after purchasing an additional 200,000 shares in the last quarter. Corient Private Wealth LP raised its stake in Pool by 59.5% during the second quarter. Corient Private Wealth LP now owns 433,569 shares of the specialty retailer's stock valued at $93,174,000 after purchasing an additional 161,787 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Pool by 48.0% during the first quarter. Bank of America Corp DE now owns 261,402 shares of the specialty retailer's stock valued at $52,889,000 after purchasing an additional 84,817 shares during the last quarter. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Pool News Roundup

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool reported third-quarter revenue of approximately $1.50 billion, up 4% year over year and ahead of analysts’ $1.48 billion estimate. Adjusted EPS was $3.40, topping consensus by $0.04 and improving slightly from the prior year. Growth was supported by pricing, maintenance-related demand and improving building-materials sales. Pool Corporation Reports Third Quarter Results; Confirms Annual Earnings Guidance Range
• Positive Sentiment: Management reaffirmed its full-year adjusted EPS guidance of $10.87 to $11.17 and projected full-year sales growth of 3% to 4%. The guidance confirmation reduces the risk of another near-term earnings reset. Pool reaffirms 2026 adjusted EPS guidance
• Positive Sentiment: The company appears to have offset higher freight costs through pricing, helping protect margins. Investors viewed the earnings beat and signs of a potential turnaround favorably after the stock’s steep decline over the past year. Why Pool Corp Stock Jumped Today
• Neutral Sentiment: Pool’s earnings call emphasized improving sales trends, but investors will likely look for sustained recovery in new-pool construction and discretionary projects before assigning a higher valuation.
• Negative Sentiment: Operating income fell 3% to $172.2 million despite the revenue increase, while reported EPS was essentially flat year over year. This indicates that cost pressures and soft industry conditions continue to constrain earnings growth. Pool Corporation reports third-quarter results

About Pool

Pool Corporation, doing business as POOLCORP, is a wholesale distributor of swimming pool and outdoor living products. The company supplies pool contractors, retailers, builders, and service professionals with products used to construct, renovate, maintain, and enhance residential and commercial pools.

Its product offerings include swimming pool equipment, pumps, filters, heaters, cleaners, lighting, chemicals, replacement parts, and maintenance supplies. POOLCORP also distributes products for outdoor living, including patio and recreational items, as well as irrigation and landscape-related supplies in selected markets.

Founded in 1993 and headquartered in Covington, Louisiana, POOLCORP serves customers through a network of distribution centers and sales operations in the United States, Canada, Europe, and Australia.

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