We recently published a list of 11 Best Buy-the-Dip Stocks to Buy Now. In this article, we are going to take a look at where Pool Corporation (NASDAQ:POOL) stands against other best buy-the-dip stocks to buy now.
As volatility rises, AllianceBernsteinbelieves that staying invested remains a strategic priority to capture the long-term return potential in a broadening market. Global equities saw fresh difficulties in Q1 2025 amidst increased trade-war worries and developments in AI. As per the firm, bouts of volatility and a cloudy outlook highlighted the increased importance of diversification, valuations, and company fundamentals.
Realignment of Earnings
As per AllianceBernstein, recent shifts in equity return patterns highlight a deeper look at longer-term earnings trends. Over the previous 15 years, the US corporate earnings growth managed to outpace that of the non-US companies, reflected by the MSCI EAFE Index. The firm believes that, before 2010, this wasn’t always the scenario. Its research demonstrated that in 3 of the 4 decades since 1970, non-US earnings surpassed US earnings. This year, US corporate earnings growth is projected to come closer in line with that of earnings growth of the rest of the world, says AllianceBernstein. At the same time, the equity valuations outside the US remain at a significant discount, considering the 2025 forecast earnings.
Despite a difficult quarter, the firm opines that the US stocks are critical to any diversified allocation. Over the last 60 years, US earnings growth has continued to rise consistently, tackling significant economic and geopolitical shocks. Unshakeable US advantages— which span from innovation to education to corporate culture— form a critical factor for the equity returns. Overall, the firm believes that a US allocation with disciplined active portfolios throughout the style spectrum is the correct way to tap into the dynamic market.
According to BlackRock, the US is home to some renowned and innovative companies. The country remains at the forefront of the AI infrastructure buildout and a frontrunner on the global stage when it comes to both R&D spending and patent applications. IP laws continue to stimulate such an innovative impulse. As per the firm, the US possesses over half the world’s “unicorn” companies. According to them, any moves toward policy targeting deregulation can further accelerate the innovative edge.
These measures contribute to the firm’s positive long-run outlook for US stocks. Over the near term, it anticipates that the market will broaden out. This broadening will take place from “Magnificent 7” leadership to the rest of the US and also to other parts of the world. As per the asset manager, Q1 results can be a teaser. The developed markets, ex-U.S., are expected to lead returns, followed by emerging markets and then value stocks in the U.S.
Our Methodology
To list the 11 Best Buy-the-Dip Stocks to Buy Now, we used a screener to shortlist stocks that trade close to their respective 52-week lows. After getting an extended list of 25-30 stocks, we chose the ones popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Pool Corporation (POOL) the Best Buy-the-Dip Stock to Buy Now?
Aerial view of a swimming pool with outdoor furniture surrounding it.
Pool Corporation (NASDAQ:POOL) is engaged in distributing swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products. The execution of its long-term strategic initiatives and organic growth investments resulted in positive performance in Q1 2025. The company’s team generated more than $1.0 billion in net sales, demonstrating the strength and resiliency of its business. Pool Corporation (NASDAQ:POOL) expanded its sales center network through the addition of 2 greenfield locations and has optimized the supply chain capabilities. Furthermore, it has expanded its suite of premium product offerings.
Combined with the further integration of its digital platform, such initiatives place Pool Corporation (NASDAQ:POOL) well to capture available demand, allowing it to outperform the market. The company confirmed its FY 2025 earnings guidance range of $11.10 – $11.60 per diluted share, including the impact of YTD tax benefits of $0.10. With the company approaching the swimming pool season, Pool Corporation (NASDAQ:POOL) remains focused on strengthening its industry-leading position with the help of disciplined execution, continued innovation of its customer-centric POOL360 digital ecosystem, and growing the sales center network. Stifel analyst W. Andrew Carter gave the price target of $300, and kept a “Hold” rating on the company’s stock.
The London Company, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Pool Corporation (NASDAQ:POOL) – Shares of POOL outperformed despite a challenging demand environment for new pool construction. POOL is performing well and taking market share, especially in the retail channel. Broadly, POOL continues to invest in technology, capacity, and capabilities regardless of market conditions – this approach allowed them to come out of the last housing downturn in an exceptionally strong position, and we believe it will repeat this time around.”
Overall, POOL ranks 7th on our list of best buy-the-dip stocks to buy now. While we acknowledge the potential of POOL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than POOL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
