Pool Corp. (POOL) closed the last day of trading at $356.94, up +1.11% from the previous trading session. This change lagged the S&P 500’s 3.06% gain on the day. Meanwhile, the Dow gained 2.68% and the Nasdaq, a technology-heavy index, lost 0.09%.

Going into today, shares of the pool supplies distributor had lost 11.93% over the past month, lagging the Consumer Discretionary sector’s loss of 6.59% and the S&P 500 loss of 4.31% during this period.

Investors are hoping for Pool Corp’s strength. approaching the next publication of its results. That day, Pool Corp. is expected to report earnings of $7.40 per share, which would represent 16.17% year-over-year growth. Meanwhile, our latest consensus estimate calls for revenue of $2.12 billion, up 18.76% from the prior year quarter.

Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $18.50 per share and revenue of $6.33 billion. These totals would mark changes of +21.87% and +19.49%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Pool Corp. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate has remained flat over the past month. Pool Corp. holds a Zacks rank of #3 (Hold) at this time.

Investors should also note Pool Corp.’s current valuation metrics, including its forward P/E ratio of 19.09. For comparison, his industry has an average Forward P/E of 7.57, which means Pool Corp. trades at a premium to the group.

We can also see that POOL currently has a PEG ratio of 1.91. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. Hobby and leisure products stocks maintain an average PEG ratio of 0.95 based on yesterday’s closing prices.

The leisure and recreational products industry is part of the consumer discretionary sector. This group has a Zacks industry ranking of 70, which places it in the top 28% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

To follow POOL in future trading sessions, be sure to use Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.