Zacks Research Has Negative Outlook for Pool FY2026 Earnings

Key Points

• Zacks Research lowered Pool’s FY2026 EPS forecast to $10.91 from $10.97 and maintained a “Hold” rating, slightly below the $10.94 consensus estimate.
• Analyst sentiment has weakened, with several firms cutting price targets; Pool has a consensus “Hold” rating and an average target price of $235.67.
• Despite the cautious outlook, Pool exceeded its latest quarterly EPS estimate, issued FY2026 guidance of $10.66–$10.96, authorized a $600 million share buyback, and maintains a 2.7% dividend yield.

Pool Corporation (NASDAQ:POOL - Free Report) - Investment analysts at Zacks Research reduced their FY2026 EPS estimates for shares of Pool in a research report issued to clients and investors on Thursday, August 13th. Zacks Research analyst Team now anticipates that the specialty retailer will post earnings per share of $10.91 for the year, down from their previous estimate of $10.97. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Pool's current full-year earnings is $10.94 per share. Zacks Research also issued estimates for Pool's Q3 2027 earnings at $3.67 EPS and Q1 2028 earnings at $1.71 EPS.

A number of other equities research analysts have also weighed in on POOL. Stifel Nicolaus lowered their target price on Pool from $235.00 to $189.00 and set a "hold" rating for the company in a research note on Friday, July 24th. Stephens decreased their price target on Pool from $290.00 to $225.00 and set an "overweight" rating on the stock in a research note on Friday, July 24th. Oppenheimer decreased their price target on Pool from $280.00 to $227.00 and set an "outperform" rating on the stock in a research note on Friday, July 24th. Bank of America lowered their price objective on Pool from $226.00 to $206.00 and set an "underperform" rating for the company in a research report on Monday, July 20th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Pool in a research note on Tuesday, August 11th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $235.67.

Pool Price Performance

Shares of NASDAQ:POOL opened at $194.84 on Monday. The stock has a market capitalization of $7.08 billion, a P/E ratio of 17.92, a price-to-earnings-growth ratio of 2.64 and a beta of 1.06. The stock's 50-day moving average price is $200.49 and its 200-day moving average price is $209.57. The company has a current ratio of 2.67, a quick ratio of 0.91 and a debt-to-equity ratio of 1.05. Pool has a 12-month low of $172.68 and a 12-month high of $336.15.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The specialty retailer reported $5.38 earnings per share for the quarter, topping the consensus estimate of $5.33 by $0.05. Pool had a net margin of 7.40% and a return on equity of 32.74%. The business had revenue of $1.82 billion during the quarter, compared to the consensus estimate of $1.82 billion. During the same period in the previous year, the firm posted $5.17 earnings per share. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. Pool has set its FY 2026 guidance at 10.660-10.960 EPS.

Pool declared that its board has authorized a share repurchase program on Wednesday, April 29th that permits the company to buyback $600.00 million in outstanding shares. This buyback authorization permits the specialty retailer to buy up to 7.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its shares are undervalued.

Pool Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th will be issued a $1.30 dividend. The ex-dividend date is Thursday, August 13th. This represents a $5.20 annualized dividend and a yield of 2.7%. Pool's dividend payout ratio is 47.84%.

Institutional Investors Weigh In On Pool

Several institutional investors and hedge funds have recently modified their holdings of the stock. Clearstead Advisors LLC increased its position in shares of Pool by 100.0% during the fourth quarter. Clearstead Advisors LLC now owns 122 shares of the specialty retailer's stock valued at $28,000 after buying an additional 61 shares during the period. Private Trust Co. NA raised its stake in Pool by 78.6% in the fourth quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock worth $29,000 after buying an additional 55 shares in the last quarter. Elevation Wealth Partners LLC lifted its holdings in Pool by 2,660.0% in the second quarter. Elevation Wealth Partners LLC now owns 138 shares of the specialty retailer's stock worth $30,000 after buying an additional 133 shares during the period. CYBER HORNET ETFs LLC purchased a new stake in Pool in the second quarter worth about $30,000. Finally, Covestor Ltd boosted its position in Pool by 348.4% during the 4th quarter. Covestor Ltd now owns 139 shares of the specialty retailer's stock valued at $32,000 after acquiring an additional 108 shares in the last quarter. 98.99% of the stock is owned by hedge funds and other institutional investors.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool remains valued as a potential value investment within the Leisure and Recreation Products sector. A comparison with YETI may draw attention to POOL’s valuation, although the article does not provide a definitive conclusion favoring either stock. YETI vs. POOL: Which Stock Is the Better Value Option?
• Neutral Sentiment: Zacks Research maintained a Hold rating on POOL. The current full-year consensus estimate remains $10.95 in earnings per share, while its forecasts call for $11.71 EPS in fiscal 2027 and $12.92 EPS in fiscal 2028.
• Negative Sentiment: Zacks cut its EPS estimates across multiple periods: third-quarter 2026 to $3.33 from $3.46, fourth-quarter 2026 to $0.77 from $0.81, and first-quarter 2027 to $1.52 from $1.59.
• Negative Sentiment: The research firm also reduced its second-quarter 2027 estimate to $5.69 from $5.86, second-quarter 2028 to $6.21 from $6.29, fiscal 2027 to $11.71 from $11.94, and fiscal 2028 to $12.92 from $13.02. The broad-based downward revisions likely contributed to investor caution because they imply softer earnings potential than previously expected.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation's extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company's product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.

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