Swimming pool distributor Pool (NASDAQ:POOL) fell short of the market’s revenue expectations in Q4 CY2025, with sales flat year on year at $982.2 million. Its GAAP profit of $0.85 per share was 12.2% below analysts’ consensus estimates.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. Over the past six months, it seems like demand trends may be working against their favor as the industry’s returns were flat while the S&P 500 was up 7.3%.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Latham Group (NASDAQ: SWIM), the world’s largest manufacturer of in-ground residential swimming pools, experienced a dramatic surge in trading volume on January 8, 2026, as investors reacted to a combination of a high-profile leadership transition and a robust new product unveiling. The stock saw approximately 1.25 million shares
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner.
Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
