Pool Corporation (POOL): A Bull Case Theory

We came across a bullish thesis on Pool Corporation on Summit Stocks’s. In this article, we will summarize the bulls’ thesis on POOL. Pool Corporation's share was trading at $298.99 as of July 21^st. POOL’s trailing and forward P/E were 28.00 and 27.17, respectively according to Yahoo Finance.

Pool Corporation (POOL), the world’s largest wholesale distributor of swimming pool supplies and equipment, commands the U.S. market with ~11 million pools requiring ongoing maintenance, repairs, and upgrades. Its business, driven by secular pool growth, is supported by recurring demand as ~65% of revenue stems from non-discretionary maintenance and repair, providing resilience across cycles.

COVID-19 pulled forward demand, leading to stalled revenue growth since 2021 and causing shares to lag, returning just 12% in five years versus the S&P 500’s doubling. This pullback has created an attractive entry point, as underlying fundamentals remain strong: high returns on capital, recurring revenue, pricing power, and a deep moat.

Berkshire Hathaway’s recent stake underscores confidence, with POOL trading at a >5% free cash flow yield. Founded in 1980, POOL has grown through acquisitions into a network of 448 sales centers across five distribution channels, serving ~125,000 fragmented customers—builders, service companies, and retailers—sourced from 2,200+ vendors including Pentair, Zodiac, and Hayward.

Its extensive inventory of over 200,000 products and superior logistics deliver unmatched scale and service. Operational autonomy and internal competition drive revenue per center growth above network expansion, while scale advantages like rebates and early-buy discounts support strong unit economics.

With revenue concentrated in warm-weather states and secular growth in U.S. pool installations, POOL is positioned as a compounding machine. Market mispricing, recurring revenue, and structural industry leadership set the stage for meaningful upside, with current valuations offering investors a favorable risk/reward profile.

Previously, we covered a bullish thesis on Pool Corporation (POOL) by Douglas Ott in May 2025, which highlighted the prolonged COVID-driven correction, macroeconomic pressures, and tariffs weighing on growth while stressing POOL’s resilient maintenance revenues and pricing power. The company’s stock price has appreciated approximately 2.6% since our coverage. Summit Stocks shares an identical view but emphasizes secular growth, structural leadership, and Berkshire’s stake.

Pool Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held POOL at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the potential of POOL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.