/Pool%20Corporation%20logo%20with%20green%20background-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Covington, Louisiana-based Pool Corporation (POOL) is the world's leading independent distributor of swimming pool supplies, equipment, and related leisure products. With a market cap of $13.9 billion, Pool operates around 440 locations through its distribution networks and serves over 125,000 customers worldwide.
Pool has lagged behind the broader market over the past year. POOL stock prices have dipped 2.2% on a YTD basis but gained around 10% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) surge of 25.5% in 2024 and 31.3% over the past year.
Narrowing the focus, Pool stock has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 25.9% gains on a YTD basis and 35% returns over the past 52-week period.
POOL stock prices soared 7.6% following the release of its better-than-expected Q3 earnings on Oct. 24. The company has observed a 2.8% year-over-year drop in net sales to $1.4 billion due to continued softness in revenues from pool construction and discretionary products. However, the company made additional progress on its Pool360 technology rollouts and digital marketing expansion and observed strong growth in private-label chemical sales and steady demand in non-discretionary maintenance products which led to the company outpacing Wall Street’s topline expectations by 2.6%.
Moreover, the company’s gross margin has remained steady at 29.1% same as the year-ago quarter, while its adjusted EPS of $3.27 surpassed analysts’ consensus estimates by a notable 3.5%, bolstering investor confidence.
For the current fiscal year, ending in December, analysts expect Pool to report a 16.5% year-over-year dip in EPS to $11. The company’s earnings surprise history is mixed. It has surpassed analysts’ earnings estimates thrice over the past year while exceeding on another occasion.
POOL stock has a consensus “Moderate Buy” rating overall. Out of the 12 analysts covering the stock, five recommend “Strong Buy,” six advise “Hold,” and one suggests a “Moderate Sell” rating.
This configuration has been consistent over the past three months.
On Oct. 25, Loop Capital analyst Garik Shmois maintained a “Hold” while raising the price target to $395, indicating a minuscule upside potential of 1.3% from current price levels.
As of writing, Pool is trading above its mean price target of $382.40. The Street-high target of $450 suggests a 15.4% potential upside from current price levels.
