Here's Why Shares of Pool Corp. Surged in July
After a 15.5% decline in June, shares of wholesale swimming pool products distributor Pool Corp. (NASDAQ: POOL) rose by 21.7% in July, according to data from S&P Global Market Intelligence. Why such volatility in the shares of a swimming pool products company? After all, this isn't a speculative biotech or a one-solution IT company.
The answer lies in the probability that this will be the year when the interest rate cycle turns. Whether long-term investors like it or not, investors, both on the long side and those shorting individual stocks, will play the guessing game of when the Federal Reserve will cut interest rates or make statements supporting the notion of cutting rates.
It's a relevant question to Pool Corp. investors, because a significant portion of its revenue relates to consumer discretionary spending on pools, notably new Pool construction. With high interest rates making monthly mortgage payments more expensive, there's a natural slowdown in home sales, and homeowners feel their housing asset values are under pressure.
Source Fool.com
Pool Corp. Stock
The community is currently still undecided about Pool Corp. with 1 Buy predictions and 0 Sell predictions.
With a target price of 370 € there is a slightly positive potential of 11.65% for Pool Corp. compared to the current price of 331.4 €.
