Pool Corporation (POOL), headquartered in Covington, Louisiana, distributes swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products in the United States and internationally. With a market cap of $12.3 billion, the company serves swimming pool remodelers and builders, swimming pool repair and service businesses, and construction and landscape maintenance contractors.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and POOL perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the industrial distribution industry.
However, POOL has faced struggles and is currently trading 21.1% below its 52-week high of $410.60, recorded on Mar. 28, last year. Over the past three months, POOL stock dropped 6.1%, compared to the broader Nasdaq Composite’s ($NASX) fall of 9.7% over the same time frame.
Shares of POOL have declined 21.8% over the past 52 weeks, underperforming $NASX's 8.6% return over the last year. Moreover, over the past six months, POOL shares have plunged 13%, lagging behind $NASX’s marginal decline.
POOL has faced volatility recently and has slipped past its 50-day and 200-moving average since early March, indicating a downtrend.
POOL shares surged 1% following its Q4 earnings release on Feb. 20. The company reported a 2% decrease in its net sales, which amounted to $$987.5 million. For the full year, POOL reported net sales of $5.3 billion and an operating margin of 11.6%. The company’s EPS amounted to $0.97, surpassing the Wall Street estimates by 6.6%. For fiscal 2025, the company expects its earnings per share to be in the range of $11.08 to $11.58.
Its rival, Hayward Holdings, Inc. (HAYW), is in the same boat, with its shares tanking 8.2% over the past six months and 9.7% over the past 52 weeks.
Wall Street analysts are moderately bullish on POOL’s prospects. The stock has a consensus “Moderate Buy” rating from the 12 analysts covering it, and the mean price target of $366.50 suggests a potential upside of 13.1% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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