Pool Corp (POOL) Back in Focus as Analysts Revisit the Building Products Outlook

Pool Corporation (NASDAQ:POOL) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside.

On December 23, CFRA upgraded Pool Corporation (NASDAQ:POOL) to Buy from Hold and set a $304 price target.

That followed a more cautious note a week earlier. On December 16, Stifel analyst W. Andrew Carter lowered his price target on POOL to $240 from $295 and kept a Hold rating. In a year-ahead outlook, the firm said it carries “a positive overall bias” toward building products in 2026, including home improvement retailers. The view rests on compressed valuations, reset near-term expectations, and long-term confidence in US residential investment.

Pool’s business mix explains the mixed outlook. About one-third of revenue comes from new pool installations. That part of the business surged during the pandemic, then cooled as lockdown-driven demand faded. Since most new pools are built alongside new homes, higher interest rates and a slower housing market have weighed on growth.

The other two-thirds of revenue comes from maintaining and repairing existing pools. That stream is steadier. Even homeowners who rarely swim still have to keep their pools clean and functional. Skipping maintenance is not really an option, unless someone wants to deal with a green, unusable pool later on.

Pool Corporation (NASDAQ:POOL), also known as POOLCORP, is the world’s largest wholesale distributor of swimming pool equipment, parts, supplies, and outdoor living products.

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.

READ NEXT: 13 Highest Paying Monthly Dividend Stocks to Buy and 10 Best Debt Free Dividend Stocks to Buy Now.

Disclosure: None.