#4 - Pool Corporation (NASDAQ:POOL)
When you think about consumer discretionary stocks that could really use a rate cut, Pool Corporation (NASDAQ: POOL) is likely the kind of company you had in mind. As its name suggests, the company provides pool equipment and related products and services.
POOL stock is down more than 23% in 2024. Much of that decline has come since the company delivered a bearish outlook on new pool construction for the remainder of the year. This isn’t a new phenomenon. In its April earnings report, Pool posted its sixth consecutive quarter of year-over-year declines in revenue and earnings.
That stands to reason, as the housing market is tight. Plus, many homeowners are opting to put off a large ticket purchase until inflation and interest rates become more favorable. Also, the entire industry is experiencing a period of normalization after two years of strong demand.
That’s also, however, why there could be a bullish case for POOL stock. Although the timing of any rate cut is unclear, it will be bullish for housing and housing-adjacent stocks like POOL. And investors that buy now will add shares at POOL's 52-week low and collect a decent dividend while they wait.
About Pool
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling.
Read More - Current Price
- $393.96
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $369.11 (6.3% Downside)
