Our first idea today is a swimming pool company that beat EPS estimates by $0.13 in its latest quarter. Analysts are betting on growing earnings, with five raising their forecasts for this year in the past month. Zacks has also chimed in, rating the company’s shares a ‘Buy’, based on double-digit earnings expectations. Our second recommendation is taking profits on a recent pick.
Buy: Pool Corp. (POOL)
From Martin’s Ultimate Portfolio
Pool Corp. (POOL) to our portfolio, we were impressed with their strong fundamentals. But when we dug into the long-term earnings picture, we were even more impressed …
Pool delivered bottom-line earnings per share (EPS) of $2.44 in 2014 and $2.90 in 2015, solid results for sure.
But analysts are expecting those numbers to get even better: EPS for Pool are expected to come in at $3.38 in 2016 and $3.82 in 2017.
In fact, when we compared the three-year time span from 2014 to 2017, Pool’s earnings are expected to rise over 56%. That’s a solid increase and a big plus for share growth down the road.
Martin D. Weiss, Martin’s Ultimate Portfolio, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/martinsultimate-portfolio; Email: issues@e.moneyandmarkets.com, 800-291- 8545, May 13, 2016