Pool Corporation’s (POOL) first-quarter 2011 earnings outperformed the Zacks Consensus Estimate. The company is an acknowledged leader in the industry. The potential for market growth is significant and cost-containment initiatives augur well for the business.

The upcoming quarter is seasonally strong. Pool generates the major portion of its revenue in the second quarter of every year. Hence, we upgrade the stock from a Neutral to an Outperform recommendation.

Our six-month target price of $36.00 equates to 25.2x our earnings estimate for 2011. This price target implies an expected total return of 19.8% over that period.
POOL CORP (POOL): Free Stock Analysis Report
Zacks Investment Research