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Pool Corp Falls 24% YTD: Time to Buy, Sell or Hold?

Pool Corporation (NASDAQ: POOL) stock is reeling under the pressure of a declining top line due to weak demand for new pool construction and deferred discretionary replacement activities. This and persistent economic uncertainty and elevated interest rates further dented new pool starts. While the decline in new pool construction presents challenges across multiple facets of operations, there is confidence that the downturn mirrors the cyclicality observed historically. Shares of Pool Corp have declined 23.6% so far this year compared with the Zacks Leisure and Recreation Products industry's 11.8% drop. Also, the company's share price performance lagged industry players, including American Outdoor Brands, Inc. (NASDAQ: AOUT), Acushnet Holdings Corp. (NYSE: GOLF) and Academy Sports and Outdoors, Inc. (NASDAQ: ASO). Image Source: Zacks Investment Research Factors Acting Against POOL Year-to-date (from late May to early June 2024), Pool Corp's sales are trending down approximately 6.5% compared with the year-ago period's tally. The decline was likely due to the discretionary components of the business, which are heavily influenced by general economic conditions. The company's early projections for the peak selling season indicate a persistent decline, with new pool construction activity expected to drop 15-20% year over year. ...