Pool Corporation (POOL): A Bull Case Theory

Core Viewpoint - Pool Corp. is showing signs of a potential turnaround in revenue growth after a challenging period, influenced by favorable market conditions such as decreasing interest rates and high retirement account values [2][4][6]. Company Overview - Pool Corp., established in 1980, has grown to be the largest distributor of pool products in the U.S., generating $5.3 billion in annual revenues [2]. - Historically, about 15% of its revenues come from new pool construction, which has faced challenges recently [2]. Recent Performance - After nine consecutive quarters of negative revenue growth, Pool Corp. reported a 0.8% growth in quarterly revenues in Q2 2025, indicating a possible recovery [2][4]. Influencing Factors - The growth of Pool Corp. is affected by new home construction, interest rates, and retirement account values [3]. - New pool construction typically lags behind new home construction by 2 to 3 years, suggesting a delayed impact on Pool Corp.'s revenues [3]. Market Conditions - With interest rates decreasing and the market reaching all-time highs, there is optimism for a new growth phase for Pool Corp. if these conditions lead to increased new pool construction [4][6]. - The recent positive revenue growth, although modest, suggests that the company may be emerging from a difficult period [4]. Investment Sentiment - The stock has appreciated by 7.0% since previous bullish coverage, reflecting confidence in the company's consistency and financial rigor [5]. - Pool Corp. is not among the 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding POOL at the end of Q2, up from 39 in the previous quarter [7].