Leslie's, Inc. - Common Stock (LESL)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Leslie's (NASDAQ:LESL) and the best and worst performers in the specialty retail industry.

Shares of pool products retailer Leslie’s (NASDAQ:LESL) jumped 3.5% in the pre-market session after the company announced the appointment of a seasoned retail executive, Amy College, as its new Chief Merchandising and Supply Chain Officer. 

A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.

Rock-bottom prices don't always mean rock-bottom businesses. The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?

A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development has sent crude oil prices surging, as investors fear potential disruptions to global oil supply and a wider regional conflict. 

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.

Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Pool products retailer Leslie’s (NASDAQ:LESL) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 6.1% year on year to $177.1 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.34 billion at the midpoint. Its non-GAAP loss of $0.25 per share was 4.6% below analysts’ consensus estimates.

Pool products retailer Leslie’s (NASDAQ:LESL) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 6.1% year on year to $177.1 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.34 billion at the midpoint. Its non-GAAP loss of $0.25 per share was 4.2% below analysts’ consensus estimates.

Pool products retailer Leslie’s (NASDAQ:LESL) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.