Pool Corp. (POOL) Traded Lower After Missing Estimates

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start, but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned 5.00% net-of-fees vs 11.31% for the index. Sector allocation effects were positive, while sector allocation effects were negative. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Pool Corporation (NASDAQ:POOL). Pool Corporation (NASDAQ:POOL) is a distributor of swimming pool supplies, equipment, and related leisure products. The one-month return of Pool Corporation (NASDAQ:POOL) was 11.47%, and its shares lost 11.98% of their value over the last 52 weeks. On July 25, 2025, Pool Corporation (NASDAQ:POOL) stock closed at $324.90 per share, with a market capitalization of $12.215 billion.

Conestoga Capital Advisors stated the following regarding Pool Corporation (NASDAQ:POOL) in its second quarter 2025 investor letter:

“Pool Corporation (NASDAQ:POOL) is one of the largest distributors of pool equipment, supplies and related building materials in the world. The stock sold off after missing estimates during its seasonally smallest quarter. While macro uncertainty and persistently high interest rates have delayed discretionary projects, maintenance revenues (60+% of revenue) have performed well.”

Aerial view of a large public swimming pool surrounded by lush green lawn and trees.

Pool Corporation (NASDAQ:POOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 39 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the first quarter compared to 32 in the previous quarter. Pool Corporation (NASDAQ:POOL) reported $1.8 billion in net sales in Q2 2025, up 1% compared to Q2 2024. While we acknowledge the risk and potential of Pool Corporation (NASDAQ:POOL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Pool Corporation (NASDAQ:POOL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Pool Corporation (NASDAQ:POOL) and shared a bullish thesis on the stock. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.