POOL Stock Analysis — Pool Corporation
Sector: Consumer Discretionary
AI Verdict
POOL trades at a fair price for its expected growth, but after a steep drop and with only modest earnings acceleration, you're relying on the moat in distribution to stabilize returns.
Competitive Moat
Pool Corporation dominates North American pool supply distribution, leveraging exclusive supplier relationships and a vast logistics network that smaller rivals can't easily replicate. Its scale and inventory breadth create switching costs for contractors and commercial customers.
Summary
POOL stands out for its entrenched distribution network in pool supplies, but faces scrutiny after a -39.86% one-year return.
Where It Stands
POOL trades at 16.5x next year's earnings, below the consumer discretionary sector median of 20x, with an RSI of 62.7 signaling neutral-to-elevated territory after a -39.86% annual return.
Key Metrics
- RSI: 62.7 — Near Overbought
- Trailing P/E: 18.3x
- Forward P/E: 16.5x
- PEG Ratio: 1.54
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $7.2B
- Dividend Yield: 0.03%
- 1-Year Return: -39.86%
- 52-Week High: $336.15
- 52-Week Low: $172.68
Analyst Consensus
11 Buy · 11 Hold · 1 Sell (23 analysts)
Bull Case
Forward EPS is expected to grow 10.7% while the stock trades at 16.5x forward earnings, so you're paying less than the sector median for steady profit growth.
Bear Case
If the P/E falls from 16.5x to the sector's low end (say, 14x), that would wipe another ~15% off the share price even if earnings meet expectations.
Catalyst to Watch
Watch for upcoming earnings releases to confirm whether the 10.7% EPS growth target is achievable amid tepid 2.2% revenue growth.