A recent bullish thesis from Douglas Ott on Andvari’s Substack highlights the positive outlook for Pool Corporation (POOL). As of September 20, 2025, shares of Pool Corp. were trading at $317.92. According to Yahoo Finance, the company’s trailing and forward price-to-earnings ratios stand at 29.33 and 26.43, indicating it is valued reasonably in the current market climate.
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Founded in 1980 as South-Central Pool Supply, Pool Corp. has evolved into the largest distributor of pool products in the United States, generating $5.3 billion in annual revenues. The company has faced challenges in recent years, particularly regarding new pool construction, from which approximately 15% of its revenue is derived. However, a notable shift occurred when Pool Corp. reported a 0.8% increase in quarterly revenues for the second quarter of 2025, breaking a nine-quarter streak of negative revenue growth.
Several factors play a vital role in shaping the company’s growth trajectory, including trends in new home construction, fluctuations in interest rates, and the value of retirement accounts. CEO Peter Arvan noted that new pool construction typically lags new home construction by 2-3 years. Although former CEO Manuel De La Mesa observed that interest rates had a minimal effect on new pool builds previously, recent adjustments in interest rates, along with peaks in retirement account values, may positively affect demand.
With interest rates trending downwards and financial markets hitting all-time highs, Pool Corp. appears poised for a return to normal growth patterns, potentially catalyzing an uptick in new pool construction projects. The company’s mild revenue increase signals a potential recovery, and when paired with conducive market conditions, this bodes well for investments in Pool Corp.
An earlier bullish analysis on Pool Corp. from Compounding Quality’s Substack noted a 7.0% appreciation in the stock price since the coverage. The previous thesis emphasized the company’s consistent business model, financial strength, and value re-evaluation—all supported by endorsements from significant investors like Berkshire Hathaway. Douglas Ott echoes these sentiments, pointing to favorable market trends as key drivers for Pool Corp.’s recovery.
Despite these encouraging factors, Pool Corp. is not featured on our list of the 30 Most Popular Stocks Among Hedge Funds. As recorded, 44 hedge funds held shares of POOL by the end of Q2 2025, up from 39 the previous quarter. While acknowledging both the risks and potential of Pool Corp. as an investment, we believe certain AI-driven stocks offer higher upside potential with comparatively lower downside risks. For those interested in an undervalued AI stock that is poised to benefit from the onshoring trend and recent tariffs, we recommend our free report on the best short-term AI stock.
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