POOL Stock Analysis — Pool Corporation
Sector: Consumer Discretionary
AI Verdict
POOL trades at a discount to consumer discretionary peers for 10.5% expected growth, which is cheap if its logistics and supplier relationships keep competitors at bay.
Competitive Moat
Pool Corporation is the dominant distributor of pool supplies and equipment to contractors and retailers, benefiting from a vast logistics network and exclusive supplier relationships that create high switching costs for customers. Its scale and distribution reach make it difficult for smaller competitors to match its inventory breadth or service levels.
Summary
POOL is notable for its entrenched national distribution network in a fragmented pool supply market.
Where It Stands
POOL is down -32.94% over the past year, trades at 16.9x next year's earnings (below the consumer discretionary median of 20x), and its RSI of 54.7 signals a neutral stance.
Key Metrics
- RSI: 54.7 — Neutral
- Trailing P/E: 18.7x
- Forward P/E: 16.9x
- PEG Ratio: 1.37
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $7.4B
- Dividend Yield: 0.02%
- 1-Year Return: -32.94%
- 52-Week High: $345.00
- 52-Week Low: $172.68
Analyst Consensus
11 Buy · 11 Hold · 1 Sell (23 analysts)
Bull Case
A forward P/E of 16.9x with 10.5% expected EPS growth offers a cheaper entry than most consumer peers if its distribution moat holds.
Bear Case
If the P/E reverts to 14x (the financials sector median), the stock could see another 17% downside from here.
Catalyst to Watch
Watch for the next earnings update to confirm if EPS can actually grow 10.5% as forecast, validating the current multiple.