Comprehensive Investment Analysis of Pool Corporation (NASDAQ: POOL)

Published Date: January 02, 2026

Company Overview

Pool Corporation, headquartered in Covington, Louisiana, is a leading player in the Industrial Distribution industry within the broader Industrials sector. Established in 1993, the company specializes in distributing a wide variety of swimming pool supplies, equipment, and leisure products, expanding its reach both in the United States and internationally. Pool Corporation's product scope includes maintenance products, repair parts for pool equipment, construction materials for new and remodeled pools, and irrigation system components.

In addition to serving residential customers, Pool Corporation caters to commercial businesses, supplying products such as fiberglass pools, hot tubs, and outdoor recreational items to swimming pool builders, remodelers, specialty retailers, repair businesses, and commercial pool operators. With total revenue reaching approximately $5.29 billion, Pool Corporation has firmly established its position in the pool and landscape maintenance market.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Over the past year, Pool Corporation's stock has experienced significant volatility. As of January 2, 2026, the stock is trading at $228.75, having seen a substantial 30.15% decline from its 52-week high of $374.74. The steep downturn indicates a bearish trend, with the stock consistently forming lower highs and lower lows. An essential element of technical analysis reveals critical support at the $228 level, where the stock has recently found footing, but the ongoing bearish pressure suggests that this support could be vulnerable to additional downward pressure.

Attempts to breach the resistance level at approximately $325 were unsuccessful, indicating solid resistance that may hinder a swift recovery. The fifty-day moving average currently sits at $249.37, which has also acted as a rejection point throughout the year. The downward trajectory of the moving average, coupled with frequent volatility, highlights a prevailing sentiment among investors that caution remains key.

Key Price Levels

• Support Level: $228
• Resistance Level: $325
• 52-week High: $374.74
• 52-week Low: $227.40
• 50-Day Moving Average: $249.37

Financial Performance and Metrics

Pool Corporation's financial health appears robust, with total revenues reported at approximately $5,294,666,240. The company has an EBITDA of $637,102,976, demonstrating sound operational efficiency and profitability, which supports its stable business model.

The current price-to-earnings (P/E) ratio stands at an appealing 21.05, suggesting that, while the stock is trading below its prior highs, investors may find potential value at these levels. Furthermore, the company maintains a dividend yield of 2.19%, having delivered a quarterly cash dividend of $1.25 per share, reflecting a commitment to returning value to shareholders. With a history of paying dividends for 22 consecutive years, Pool Corporation remains a reliable choice for income-focused investors.

Financial Snapshot

• Total Revenue: $5.29 billion
• EBITDA: $637.10 million
• P/E Ratio: 21.05
• Dividend Yield: 2.19%
• Outstanding Shares: 37,249,484
• Shares Shorted: 2,809,425 (Short interest: 8.9%)

Recent News and Developments

In recent months, Pool Corporation has marked significant milestones and developments that may impact investor sentiment:

1. Quarterly Dividend: On November 26, 2025, the company declared a quarterly cash dividend of $1.25 per share, reinforcing its long-standing tradition of returning value to shareholders.

2. 30-Year Anniversary: To celebrate its 30th anniversary as a publicly listed entity, Pool Corporation rang the opening bell at the Nasdaq MarketSite on October 28, 2025, highlighting its growth and enduring presence in the market.

3. Analyst Coverage: Guggenheim initiated coverage with a Neutral rating, highlighting near-term growth challenges while recognizing the company's positive long-term outlook. This cautious stance reflects changing market conditions affecting investor sentiment.

Market Sentiment and Analyst Recommendations

As of now, analyst sentiment towards Pool Corporation remains cautious yet optimistic about its long-term prospects. The current stock price of $228.75 is significantly below the optimistic target high price of $375.00, suggesting considerable potential for price appreciation. The mean target price is pegged at approximately $322.91, indicating a favorable outlook among analysts, despite the absence of a specific consensus.

Analyst Price Targets

• High Target Price: $375.00
• Mean Target Price: $322.91
• Median Target Price: $331.00
• Current Price: $228.75

The stock's low target price stands at $250.00, indicating that analysts are somewhat divided on the immediate trajectory of the stock. However, with only 8.9% of the shares shorted, market sentiment leans towards optimism, suggesting that most investors maintain confidence in the company's future.

Opportunities and Risks

Investors eyeing Pool Corporation should weigh both opportunities and risks:

Opportunities

• The strong revenue and earnings capacity indicate a solid foundation for growth.
• The company's robust dividend yield presents an attractive value proposition for income-focused investors.
• Current stock price levels suggest significant upside potential given the historical high.

Risks

• The bearish trend poses a risk of further declines if market sentiment does not improve.
• Failure to breach resistance levels may hinder recovery efforts, leading to potential stagnation.
• Increased volatility could lead to investor losses if downturns continue.

Conclusion

In summary, Pool Corporation is a well-established player in the Industrial Distribution sector, showcasing a solid financial foundation supported by consistent dividend payments and robust revenues. While the bearish trend raises concerns among investors, the potential for significant price appreciation based on analyst price targets presents an enticing opportunity. As always, investors should carefully consider the inherent risks and conduct thorough due diligence before making investment decisions in the ever-evolving market landscape.