Is Pool Corporation (POOL) A Good Stock To Buy Now?

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Wasatch Core Growth Fund recently released its Q2 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 8.6% for the quarter, outperforming its benchmark, the Russell 2000 Index which returned 4.3% in the same quarter. You should check out Wasatch’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Pool Corp. (NASDAQ:POOL) is one of them. Pool Corp. (NASDAQ:POOL) distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. In the last three months, Pool Corp. (NASDAQ:POOL) stock gained 9%. Here is what the fund said:

“The top contributor to Fund performance for the second quarter was Pool Corp. (POOL), a wholesale distributor of swimming pools and related supplies. The company’s customers include more than 120,000 contractors and retailers. Pool offers approximately 200,000 national-brand and private-label products from more than 2,000 suppliers. We think the company has done an impressive job of positioning itself as a centralized, one-stop resource for pool-related needs ranging from initial construction through maintenance and refurbishment. The prevalence of stay-athome orders during the pandemic led many consumers to seek alternative outdoor activities, and Pool enjoyed a record year in 2020. While some investors had been concerned growth would slow in 2021, that hasn’t been the case. In fact, growth has accelerated. And the stock price now reflects the improved fundamentals. On the technology front, Pool has introduced a mobile app that allows customers to order supplies for expedited pickup and delivery.”

Pixabay/Public Domain

In June, we published an article revealing that Pool Corp. (NASDAQ:POOL) was one of the 10 best ESG stocks to buy now.

In Q1 2021, the number of bullish hedge fund positions on Pool Corp. (NASDAQ:POOL) stock increased by about 24% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in POOL’s growth potential. Our calculations showed that Pool Corp. (NASDAQ:POOL) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

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