This Pool Supplies Stock Is Heating Up With The Weather
Leslie's Inc (NASDAQ:LESL) thinks there could be 200,000 new swimming pools purchased in 2020 and 2021, wealth advisor Josh Brown said Tuesday on CNBC's "Fast Money: Halftime Report."
Echoing thoughts from Benzinga's Jason Raznick, Brown said demand for swimming pools is off the charts, adding that pool permits have seen 32% year-over-year growth.
The total addressable market is massive and Leslie's is a dominant player in the space, he said.
Brown's Thesis: There is a secular "deurbanization trend" that will be a major tailwind for pool supply companies, according to Brown. It's not about the money spent on installing a new pool, rather the stream of revenue that follows via pool maintenance.
"You can't install [a pool] and then get bored of it in two years and let it go," Brown said.
Leslie's competitor, Pool Corp (NASDAQ:POOL), recently reported earnings per share of $2.32, more than doubling the estimate of $1.15.
Leslie's last reported earnings on Feb. 4 The company announced record results and raised its full-year outlook for 2021.
Brown said he bought shares recently and plans to hold for years while adding to his position on weakness.
LESL Price Action: Leslie's was up 5% to 29.40 at last check Tuesday.
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