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How Do Analysts See Pool Corporation (NASDAQ:POOL) Performing In The Next 12 Months?

Simply Wall St

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Looking at Pool Corporation's (NASDAQ:POOL) earnings update on 31 March 2019, analyst forecasts seem fairly subdued, as a 9.9% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 19%. By 2020, we can expect Pool’s bottom line to reach US$258m, a jump from the current trailing-twelve-month of US$234m. Below is a brief commentary on the longer term outlook the market has for Pool. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

Check out our latest analysis for Pool

How will Pool perform in the near future?

The 8 analysts covering POOL view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of POOL's earnings growth over these next few years.

NasdaqGS:POOL Past and Future Earnings, May 9th 2019

This results in an annual growth rate of 9.2% based on the most recent earnings level of US$234m to the final forecast of US$314m by 2022. This leads to an EPS of $7.8 in the final year of projections relative to the current EPS of $5.82. In 2022, POOL's profit margin will have expanded from 7.8% to 8.2%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Pool, there are three essential factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Pool worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Pool is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Pool? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.