Core Viewpoint - Pool Corp's stock price has experienced a significant decline, reaching its lowest level since 2020, with a drop of approximately 53% from its peak this year, resulting in a loss of $16 billion in market value [1] Company Summary - The stock price of Pool Corp has fallen sharply, indicating a challenging market environment for the company [1] - The decline in stock value reflects broader trends affecting the industry, potentially signaling reduced investor confidence [1]

Group 1 - Pool Corporation (NASDAQ:POOL) is recognized as one of the 15 Dividend Stocks with low payout ratios and strong upside potential [1] - CFRA upgraded Pool Corporation from Hold to Buy with a price target of $304 on December 23 [2] - Stifel analyst W. Andrew Carter lowered the price target for Pool Corporation from $295 to $240 while maintaining a Hold rating, indicating a positive overall bias toward building products in 2026 [3] Group 2 - Approximately one-third of Pool Corporation's revenue is derived from new pool installations, which surged during the pandemic but has since cooled due to higher interest rates and a slower housing market [4] - The remaining two-thirds of revenue comes from maintaining and repairing existing pools, which provides a steadier income stream as maintenance is essential for pool functionality [5] - Pool Corporation is the world's largest wholesale distributor of swimming pool equipment, parts, supplies, and outdoor living products [5]

Upgrades - CFRA upgraded Pool Corp. (POOL) to Buy from Hold with a price target of $304 [2] - Piper Sandler upgraded SEI Investments (SEIC) to Overweight from Neutral with a price target of $102, increased from $93, citing SEI as a "clear beneficiary" of the expanding alternatives landscape [2] - TD Cowen upgraded Ametek (AME) to Buy from Hold with a price target of $230, up from $180, noting that backlog remains near highs and is expected to grow [3] Downgrades - TD Cowen downgraded Janus Henderson (JHG) to Hold from Buy with a price target of $49 after the company agreed to be acquired for $7.4 billion or $49.00 per share [4] - Piper Sandler downgraded Clearwater Analytics (CWAN) to Neutral from Overweight with a price target of $24.55, down from $27, following its agreement to be acquired for $24.55 per share in cash [4] - BMO Capital downgraded Brown & Brown (BRO) to Market Perform from Outperform with a price target of $88, down from $90, due to lower consensus organic growth estimates for 2026 [5] - Evercore ISI downgraded Coty (COTY) to In Line from Outperform with a price target of $7, citing a lack of visibility on timing and catalysts for potential value unlock [6] Initiations - Oppenheimer initiated coverage of Spruce Biosciences (SPRB) with an Outperform rating and a price target of $283, supported by FDA confirmation of compelling clinical biomarker data [7] - LifeSci Capital initiated coverage of Sionna Therapeutics (SION) with an Outperform rating and a price target of $60, highlighting multiple quality shots on goal with its therapies [7] - Oppenheimer initiated coverage of Aardvark Therapeutics (AARD) with an Outperform rating and a price target of $35, noting the company's differentiated obesity franchise [7] - JonesResearch initiated coverage of Septerna (SEPN) with a Buy rating and a price target of $43, forecasting $2.5 billion in unadjusted U.S. peak sales in 2035 [7] - Loop Capital initiated coverage of Malibu Boats (MBUU) with a Buy rating and a price target of $34, indicating the marine industry is in the late stages of inventory rationalization [7]

Company Overview - POOL Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, and related leisure products, serving a diverse customer base including pool builders, retailers, and service companies [1] - The company has a significant market presence with a market capitalization of approximately $8.68 billion [4] Market Position and Stock Performance - CFRA has set a price target of $304 for POOL, indicating a potential upside of approximately 30.87% from its current price of $232.30 [2][6] - The stock has shown slight fluctuations, trading between $231.11 and $234, with a recent increase of 0.12% or $0.29 [2][4] Competitive Landscape - Competitors like Azureon are modernizing operations by adopting advanced technology platforms such as ServiceTitan, which may influence market dynamics and impact POOL's competitive stance [3][5][6] - The integration of enterprise-grade systems in the industry is expected to enhance operational efficiency and growth potential for companies like POOL [5]

Core Insights - Pool Corp. is a leading distributor in the swimming pool supplies and equipment industry, serving various customers including pool builders and retailers [1] - CFRA upgraded Pool Corp.'s stock to a "Buy" rating on December 22, 2025, with a stock price of $232.30, indicating a positive outlook for the company [2] - Azureon, a competitor, has adopted ServiceTitan as its core technology platform to improve operational efficiency, which may affect Pool Corp.'s competitive position [3] Financial Performance - Pool Corp.'s current stock price is $232.30, reflecting a slight increase of 0.12%, with trading fluctuations between $231.06 and $234 on the day [4] - Over the past year, the stock has experienced volatility, with a high of $374.74 and a low of $229.63 [4] - The company has a market capitalization of approximately $8.68 billion and a trading volume of 658,433 shares, indicating its significant presence in the market [5] Competitive Landscape - The upgrade by CFRA and Azureon's strategic technology adoption highlight the competitive dynamics within the pool industry, suggesting potential growth and innovation opportunities [5][6]

Core Viewpoint - The article presents a list of 12 stocks that are recommended for investment during the countdown to the new year, highlighting their long-term growth potential and current market conditions. Group 1: Recommended Stocks - **Apple**: Expected to achieve an 11% gain for the year, with a strong brand and growing AI integration across products, which may drive future revenue growth [5][6]. - **Costco**: Trading at 43x forward earnings estimates, down from over 58x, with a strong business model and high membership renewal rates above 90% in the U.S. and Canada [7][9]. - **Carnival**: The world's largest cruise operator has returned to profitability and is paying down debt, trading at only 11x forward earnings estimates [11][12]. - **Intuitive Surgical**: A leader in robotic surgery with a strong moat due to high costs of its systems and recurrent revenue from instruments and accessories [13][15]. - **Vertex Pharmaceuticals**: Leading in cystic fibrosis treatment with strong revenue and growth potential in new treatment areas [16][18]. - **Coca-Cola**: Strong brand and distribution network with a history of dividend increases for over 50 consecutive years, making it a solid choice for passive income [19][20]. - **Pool Corp.**: The largest supplier of pool equipment, trading at 22x forward earnings estimates, with consistent demand for maintenance services [21][22]. - **Amazon**: A leader in e-commerce and cloud computing, benefiting from AI growth, with AWS reporting a $132 billion annual revenue run rate [24][25]. - **Target**: Facing challenges but may recover in 2026, trading at 13x forward earnings estimates, presenting a potential buying opportunity [27][28]. - **CRISPR Therapeutics**: Recently approved a blood disorder treatment, with expected significant growth in the coming year [29][30]. - **Broadcom**: A networking giant emerging as a potential AI chip winner, with high demand for custom chips [31][32]. - **Taiwan Semiconductor Manufacturing**: A key player in chip production for AI, benefiting from multiple clients and significant investments in U.S. manufacturing [33][34].

Company Overview - Pool Corporation, based in Covington, Louisiana, is the world's leading independent distributor of swimming pool supplies, equipment, and related leisure products, with a market cap of $8.9 billion and operations in hundreds of locations serving over 125,000 wholesale customers globally [1]. Market Position - Pool Corporation is classified as a mid-cap stock, fitting the description of companies valued between $2 billion and $10 billion, with extensive operations across the U.S., Canada, Mexico, Europe, and Australia [2]. Stock Performance - Pool's stock has experienced a significant decline, with prices dropping 35.9% from its 52-week high of $374.74 on March 10, and a 26.3% decrease over the past three months, underperforming the Industrial Select Sector SPDR Fund's (XLI) 3.4% increase during the same period [3]. - Year-to-date, Pool's stock has fallen 29.5%, and over the past 52 weeks, it has decreased by 35%, contrasting with XLI's 19% surge in 2025 and 13.8% returns over the past year [4]. Recent Financial Results - Following the release of better-than-expected Q3 results on October 23, Pool's stock saw a slight uptick, maintaining momentum from Q2 with top-line growth and margin expansion [5]. - For Q3, Pool's revenue increased by 1.3% year-over-year to approximately $1.5 billion, surpassing market expectations by 14 basis points, while adjusted EPS rose 4% year-over-year to $3.39, exceeding consensus estimates by 30 basis points [6]. Competitive Analysis - Compared to its peer Leslie's, Inc., which saw a 94.6% decline in 2025 and a 95.1% drop over the past 52 weeks, Pool has notably outperformed [7]. - Among 15 analysts covering Pool stock, the consensus rating is a "Moderate Buy," with a mean price target of $329.27, indicating a potential upside of 37% from current price levels [7].

Core Insights - Warren Buffett is preparing Berkshire Hathaway for long-term success despite his impending retirement as CEO, with a planned transition to successor Greg Abel in 2025 [1][3] Investment Highlights - Berkshire Hathaway's Class A shares have increased by approximately 6,118,000% since Buffett took over, significantly outperforming the S&P 500's gain of less than 46,000% during the same period [2] - Buffett has made substantial investments in five key stocks for 2026, indicating confidence in their future performance [5] Alphabet (GOOGL) - Berkshire purchased 17,846,142 shares of Alphabet during the September-ended quarter, marking a significant investment in the company [6] - Alphabet holds a dominant position in the global internet search market, with a share of 89% to 93%, and is also a major player in cloud services, with Google Cloud's sales growing over 30% year-over-year [8][9] Sirius XM Holdings (SIRI) - Berkshire has acquired 7,338,544 shares of Sirius XM, holding over 37% of the company's outstanding shares [10] - Sirius XM operates as a legal monopoly in satellite radio, with 76% of its net sales coming from subscriptions, providing stability during economic downturns [11][12] Domino's Pizza (DPZ) - Berkshire has consistently purchased Domino's stock, acquiring 599,945 additional shares in 2025 [15] - Domino's has successfully rebuilt customer trust and is leveraging technology to enhance its operations, contributing to steady growth [16][17] UnitedHealth Group (UNH) - Berkshire purchased 5,039,564 shares of UnitedHealth Group, capitalizing on a price dislocation caused by management's warnings of higher costs [20][21] - The company's health insurance operations are predictable and profitable, with a focus on mitigating costs in its Medicare Advantage segment [22] Pool Corp. (POOL) - Berkshire has added 2,860,196 shares of Pool Corp over four consecutive quarters, benefiting from the cyclical nature of the pool and spa industry [26][27] - Pool Corp generates recurring revenue from maintenance and accessories, providing cash flow stability, and has a strong capital-return program [28][29]

Core Viewpoint - Warren Buffett's recent investment in Pool Corp. has underperformed significantly, raising questions about the long-term potential of this stock [1][2]. Performance Analysis - Over the past year, Pool Corp.'s stock has declined from approximately $400 to around $245, representing a 33% loss for investors who bought in around the same time as Berkshire Hathaway [3]. - In contrast, the S&P 500 has increased by about 14% during the same period, indicating that Pool has underperformed the broader market by approximately 47 percentage points [4]. - Over the medium term, Pool's stock has decreased by about 26% over the last three years and 25% over the last five years, which is still poor when compared to the S&P 500's nearly 75% and 100% growth, respectively [5][7]. - The opportunity cost of investing in Pool has been substantial, with losses of about 100 percentage points over three years and 125 percentage points over five years compared to the S&P 500 [7]. Dividend Impact - Pool Corp.'s small dividend has had minimal impact on mitigating losses, with reinvesting dividends only reducing five-year losses by approximately 1.75% [8]. Future Outlook - While Pool's stock is currently struggling, there is potential for recovery if the real estate market improves, although the timing of such a recovery is uncertain [9]. - The situation serves as a reminder that even for long-term investors, continuous monitoring of investments is essential to ensure alignment with investment goals [9].

Core Viewpoint - There is a strong long-term Buy thesis for Pool Corporation (POOL) at current valuations, indicating good value despite being near 5-year lows [1] Company Analysis - Pool Corporation is recognized for its effective execution in the market, suggesting a solid operational performance [1] - The analysis emphasizes a long-term perspective on value creation, indicating confidence in the company's future growth potential [1] Investment Strategy - The approach combines rigorous risk management with a focus on macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable investment ideas [1]