Although Pool Corp. (NasdaqGS:POOL - News) is expected to face tougher comparisons ahead amid weak growth in new pool construction and faltering consumer confidence, the company boasts a strong market position and earnings power. Pool is an acknowledged leader in the industry.
The potential for further market share gains and cost-containment initiatives augur well for the company. Pool's results reflect continued growth in its struggling green business. Amid tough business environment, Pool's revenue has been marching ahead.
The company also expects the market condition to improve beyond 2012. Hence, we rate the stock Outperform. Our six-month target price of $45.00 equates to 26.2x our earnings estimate for 2012. This price target implies an expected total return of 20.1% over that period.
POOL CORP (POOL): Free Stock Analysis Report
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