With the highest-possible 99 Composite Rating and a spot alongside Microsoft (MSFT) and Alphabet (GOOGL) on IBD Long-Term Leaders, Pool (POOL) is swimming toward a new buy point. While making less of a splash on Wall Street, Pool stock has quietly outperformed both MSFT stock and GOOGL stock since 2009.
Pool stock has soared 4,330% off the lows it made just as a bull market was getting underway in March 2009. Since coming off the bottom it reached November 2008, Alphabet has risen more than 2,179%. From its 2009 lows, Microsoft stock has risen 1,977%.
One key to earning a spot on the IBD Long-Term Leaders list is a track record of stable earnings growth. IBD tracks such performance with a three-year earnings stability rating, where the lower the score the more stable the earnings. Pool and Alphabet both sport an 11 EPS stability factor, while Microsoft comes in with an impressive score of 3.
In addition to the IBD Long-Term Leaders list, Pool, Microsoft and Alphabet are also on the Leaderboard list of top growth stocks.
POOL stock and GOOGL stock are also on Stock Spotlight.
Pool Keeps Pace With MSFT Stock And GOOGL Stock
Pool is the world’s largest wholesale distributor of swimming pool and related backyard products. Despite not having the name recognition of Microsoft and Google, Pool continues to keep pace as each stock continues to set record highs.
With 408 sales centers in North America, Europe and Australia, Pool distributes more than 200,000 products to approximately 120,000 wholesale customers.
In October 2020, the Louisiana-based company became a member of the S&P 500.
Boosted by play-at-home trends during the pandemic and into the reopening phase, Pool holds the No. 1 ranking within the leisure products industry group, which ranks No. 8 among the 197 groups IBD tracks.
Over the last three quarters, Pool has generated average earnings growth of 178%. For Q3, analysts expect the company to post a 41% EPS increase, leading to a 63% gain for the full year.
While Pool did not join Alphabet on the list of new buys by the best mutual funds, it has posted eight quarters of rising fund ownership. Plus, 66 funds with an A+ rating from IBD own shares in the stock.
Can Pool Stock Join MSFT and GOOGL Stock And Splash Into Buy Zone?
Microsoft and GOOGL stock have already hit new all-time highs. Now, Pool stock is wading right around one of its own.
After completing a three-weeks tight formation that became a four-weeks tight pattern, Pool has eased back but remains above its 10-week moving average. As you like to see, volume on Monday’s pullback was below average, showing the large investors were not selling aggressively. Pool is trying to come off its lows in afternoon trading on Tuesday.
Look for Pool to swim past its 495.32 entry in heavy volume and keep moving higher.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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