Stock Analysis | Pool Outlook - A Weak Technical Signal and Mixed Analyst Outlook

Market Snapshot

Headline Takeaway: Pool (POOL) has a weak technical outlook with a score of 1.59, suggesting investors should avoid the stock for now.

News Highlights

Recent news includes:

• Brown-Forman Names New Distributors Across 13 Markets: Brown-Forman announced new distributor partnerships effective August 1. This could indirectly affect market dynamics for logistics and distribution stocks, though its direct impact on Pool is unclear.
• ETFGI reports that assets invested in the ETFs industry in Asia Pacific (ex-Japan) reached a new record of US$1.25 trillion at the end of April: This indicates growing interest in ETFs and suggests broader market activity, potentially affecting investor sentiment for Pool if there is a shift in ETF flows.
• GMTech Inc. Announces the Launch of NEW WEB3 Smartphone: While unrelated to Pool, the tech innovation could attract investor attention to other tech stocks, possibly creating a shift in broader market flows.

Analyst Views & Fundamentals

The average analyst rating for Pool is 3.50, while the performance-weighted rating is 2.31. These scores indicate mixed expectations among analysts, with some predicting outperformance and others underperformance.

There is discrepancy in analyst ratings, reflecting differing views on the company’s future. This is notable since the current price has risen by 2.74%, while the average expectations suggest a more neutral outlook.

Key fundamental values (with internal diagnostic scores in parentheses):

• ROE (diluted) (YoY growth rate %): 16.46% (1)
• Current liabilities / Total liabilities (%): 34.05% (0)
• ROA: 5.29% (1)
• Rate of return on total assets (%): -8.95% (0)
• Net profit margin (%): 8.68% (2)
• Cash-UP: 23.56% (0)
• Annualized return on total assets (%): -17.90% (0)
• NPM: 10.89% (2)
• Annualized net profit margin on total assets (%): 14.08% (4)
• Net profit / Total operating revenue (%): 8.68% (2)

Money-Flow Trends

Big-money (large and extra-large) flows have been negative, with inflow ratios of 0.50 and 0.40 respectively. In contrast, small and medium flows have been positive, with inflow ratios of 0.51 and 0.51 respectively.

Overall, the big-money trend indicates outflows, while retail and medium investors continue to show interest. The overall inflow ratio is at 0.44, suggesting a mixed trend with more selling pressure from institutional investors.

Key Technical Signals

Internal diagnostic scores for the key indicators (0-10, 10 = best) suggest bearish sentiment:

• WR Overbought: Score: 1
• RSI Overbought: Score: 1
• MACD Death Cross: Score: 2.04
• Bearish Engulfing: Score: 1
• MACD Golden Cross: Score: 1.75
• Ex-Dividend Date: Score: 1
• Dividend Record Date: Score: 1

Recent chart patterns include:

• 20250821: MACD Death Cross
• 20250813: WR Overbought, RSI Overbought, MACD Golden Cross
• 20250815: Bearish Engulfing
• 20250814: WR Overbought, Ex-Dividend Date, Dividend Record Date
• 20250808: WR Oversold

According to the technical analysis, 8 bearish indicators vs 0 bullish suggest a very weak trend. Momentum is clearly negative, and there is a high risk of decline.

Conclusion

Given the weak technical outlook and mixed analyst ratings, it might be wise to avoid Pool for now. Investors should also watch for any follow-up news on earnings or market shifts that could change the current bearish technical signal. Consider waiting for a pull-back or stronger fundamental signs before entering this trade.