- The stay-at-home impact of COVID-19 has led to a boom in pool installations and upgrades, causing the share-price of Pool Corp. to skyrocket.
- POOL has been a winner over the past decade as the pool-supply wholesaler has grown revenue, margins, and returns on capital by a significant extent.
- Despite gains, Pool Corp. does face competitive risks and could see significant earnings declines if the pool boom becomes a bust next year.
- Given the economic situation and the fact that POOL's valuation is double normal levels, I believe it is best to take profits on the stock.
For further details see:
Pool Corporation: Attractive Growth, But Overvaluation May Lead To A Big Dive