Why Is Wall Street So Bearish on Pool Corp? There's 1 Key Reason.

Core Viewpoint - Warren Buffett has significantly increased his investment in Pool Corp, yet the stock has not seen a corresponding bullish response from the market [1] Group 1: Stock Performance - Pool Corp's share price has decreased by one-third since Berkshire Hathaway disclosed its position in the company [2] - The current share price is $252.01, with a market capitalization of $9 billion [2] - The stock has a 52-week range of $242.10 to $395.60, indicating significant volatility [2] Group 2: Analyst Insights - Analyst Ryan Merkel downgraded Pool Corp from "outperform" to "market perform," reflecting concerns about the company's future performance [2][3] - The decline in new pool construction demand since 2022 is attributed to high inflation and interest rates rather than a return to office mandates [3] Group 3: Financial Performance - Pool Corp's revenue and earnings have declined, with last quarter's revenue up only 1% year over year and earnings per share up 4%, both figures falling short of expectations [4][5] - Pool maintenance product sales, which account for approximately 65% of total revenue, continue to show steady growth [5] Group 4: Future Outlook - Analysts suggest that it may not be until late 2026 that Pool Corp's construction supply business begins to recover as interest rates potentially decrease [4] - The company is expanding its geographic presence, which may drive further growth in pool maintenance products once new pool construction picks up again [6]