Pool Corporation Sees Mixed Performance Amid Strong Q4 Results

With a market capitalization of $13.3 billion, Pool Corporation (POOL) stands as the premier independent distributor of swimming pool equipment, parts, and related outdoor products. Operating more than 300 locations worldwide, the company supplies essential pool maintenance products, repair and replacement parts, construction materials, and products for irrigation and landscaping.

Over the past 52 weeks, shares of Pool Corporation have not kept pace with the broader market. Specifically, POOL has dropped 9%, while the S&P 500 Index ($SPX) has achieved a gain of 18.5%. On a year-to-date basis, however, POOL shares have risen by 3.1%, outpacing the SPX’s modest increase of 2.2%.

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Examining the performance more closely, POOL has also fallen behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) impressive 20.1% return during the same period.

On February 20, shares of Pool Corporation experienced a recovery of over 1% following stronger-than-expected Q4 adjusted earnings of $0.97 per share, and revenue totaling $987.5 million. Investor confidence was further supported by the company’s strategic initiatives, including the rollout of POOL360 technology, the expansion of its sales center network to 448 locations, and increased sales of private-label chemical products. Moreover, the company provided EPS guidance for 2025 in the range of $11.08 to $11.58, buoyed by stable home values and strong consumer demand for non-discretionary maintenance products.

For the fiscal year ending December 2025, analysts project that POOL’s EPS will grow 2.5% year-over-year to reach $11.35. The company has displayed a mixed earnings surprise history, achieving three beats out of the last four quarters while falling short on one occasion.

Among the 12 analysts monitoring the stock, the consensus rating stands at “Moderate Buy,” supported by five “Strong Buy” ratings, six “Holds,” and one “Moderate Sell.”

On February 21, Baird analyst David Manthey adjusted Pool Corp.’s price target to $380 while continuing to maintain a “Neutral” rating on the stock.

Currently, POOL is trading below the average price target of $368, while the highest target on the street sits at $415, indicating a potential upside of 17.9% based on current price levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein reflect those of the author and do not necessarily represent those of Nasdaq, Inc.