Pool (NASDAQ:POOL) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded POOL from a "sell" to a "hold," while analysts remain mixed overall — the stock's consensus rating is Hold with a $274.56 average price target.
• POOL reported a Q1 EPS beat ($1.43 vs. $1.34 consensus), highlighted ~6% sales growth and operating‑income expansion, and reaffirmed FY‑2026 EPS guidance of $10.87–$11.17.
• Risks include a ~14% inventory increase and a ~20‑bp gross‑margin decline, plus roughly $222.6M of added debt to fund ~$349M of share buybacks, raising leverage and working‑capital pressure.

Pool (NASDAQ:POOL - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Monday.

Several other research firms also recently weighed in on POOL. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Pool in a report on Monday, December 29th. Deutsche Bank Aktiengesellschaft set a $246.00 price target on shares of Pool in a report on Friday, February 20th. The Goldman Sachs Group cut their price target on shares of Pool from $360.00 to $310.00 and set a "buy" rating for the company in a report on Tuesday, January 13th. Stifel Nicolaus upped their price target on shares of Pool from $232.00 to $240.00 and gave the company a "hold" rating in a report on Friday. Finally, Zacks Research downgraded shares of Pool from a "hold" rating to a "strong sell" rating in a research report on Friday, March 27th. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $274.56.

Pool Stock Performance

POOL stock opened at $232.55 on Monday. The company has a market capitalization of $8.53 billion, a P/E ratio of 21.39, a PEG ratio of 2.95 and a beta of 1.26. The company has a 50-day simple moving average of $216.54 and a 200 day simple moving average of $241.90. Pool has a fifty-two week low of $195.49 and a fifty-two week high of $345.00. The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The specialty retailer reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.34 by $0.09. The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.82 billion. Pool had a net margin of 7.57% and a return on equity of 32.37%. The company's quarterly revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.32 earnings per share. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. Sell-side analysts predict that Pool will post 11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director De La Mesa Manuel J. Perez bought 5,000 shares of the company's stock in a transaction on Friday, March 13th. The shares were bought at an average cost of $205.00 per share, with a total value of $1,025,000.00. Following the transaction, the director directly owned 110,108 shares in the company, valued at approximately $22,572,140. This trade represents a 4.76% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Romain Kenneth G. St acquired 5,560 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was purchased at an average price of $218.67 per share, for a total transaction of $1,215,805.20. Following the acquisition, the senior vice president directly owned 82,845 shares of the company's stock, valued at $18,115,716.15. The trade was a 7.19% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Pool

A number of hedge funds have recently added to or reduced their stakes in POOL. CNB Bank increased its position in Pool by 4.1% in the third quarter. CNB Bank now owns 918 shares of the specialty retailer's stock worth $285,000 after buying an additional 36 shares during the last quarter. Keybank National Association OH increased its position in Pool by 4.2% in the third quarter. Keybank National Association OH now owns 999 shares of the specialty retailer's stock worth $310,000 after buying an additional 40 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its position in Pool by 22.0% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 227 shares of the specialty retailer's stock worth $70,000 after buying an additional 41 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its position in Pool by 20.0% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 270 shares of the specialty retailer's stock worth $62,000 after buying an additional 45 shares during the last quarter. Finally, Wealthspire Advisors LLC increased its position in Pool by 4.8% in the fourth quarter. Wealthspire Advisors LLC now owns 1,051 shares of the specialty retailer's stock worth $240,000 after buying an additional 48 shares during the last quarter. Institutional investors and hedge funds own 98.99% of the company's stock.

Key Stories Impacting Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Q1 beat and guidance reaffirmed — POOL reported Q1 EPS above expectations, raised or reaffirmed its FY‑2026 EPS range of $10.87–$11.17 and highlighted 6% sales growth and operating income expansion; investors are rewarding the better‑than‑expected EPS and the company’s confident outlook. Read More.
• Positive Sentiment: Analyst price target bump — Stifel raised its POOL price target to $240 (still a Hold), providing some incremental analyst support to the shares. Read more via Benzinga. Read More.
• Positive Sentiment: Earnings call tone constructive — Management emphasized resilient maintenance demand, gradual recovery in discretionary categories, contribution from greenfield locations and confidence in driving operating‑expense leverage as new centers mature. Read More.
• Neutral Sentiment: Consumer interest signals — coverage of pool‑cleaning robots and related pool‑product shopping (wired articles) could support seasonal demand for pool accessories and maintenance products, but impact on wholesale distributor POOL is indirect and timing‑dependent. Read More.
• Neutral Sentiment: Analyst stance mixed — some firms maintain Hold/Neutral ratings citing balanced risk/reward amid margin pressures and macro uncertainty; that tempers near‑term upside despite the beat. Read More.
• Negative Sentiment: Inventory build and margin pressure — inventory rose ~14% year‑over‑year and gross margin fell ~20 bps (to 29.0%) due to seasonal mix and early buys; higher inventories may pressure working capital and margins into the season. Read More.
• Negative Sentiment: Higher leverage from buybacks — total debt increased materially (about $222.6M) largely to fund ~$349M of open‑market share repurchases; higher interest expense and leverage are risks if discretionary demand weakens. Read More.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation's extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company's product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.

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