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Pool Corporation: Don't Jump In

Pool Corporation (NASDAQ:POOL) is the world's largest wholesale distributor of swimming pool and related backyard products, with sales centers in North America, Europe, South America, and Australia. Over the past year. POOL has outdistanced its peers in the GICS Distributors industry by a substantial amount, up 43% compared to 3% for the retail distribution industry.

The strong stock performance reflects increasing sales and profits due to gains in market share, an improving economy, and warmer than average temperatures at the end of the year, which lengthened the 2016 season.

Company Fundamentals

As I mentioned earlier, both revenues and profits have been steadily increasing for several quarters as a result of market share gains and improving economy.

The company's forward earnings guidance for 2017 is within the range of $4.00 - $4.20, which includes $0.20 due to the adoption of new accounting guidance related to the income tax treatment of compensation from share-based awards.

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Source: http://seekingalpha.com/article/4056892-po...
by Steve Auger