10 Best All-Time Low Stocks To Buy Right Now

7. Leslie’s, Inc. (NASDAQ:LESL)

Number of Hedge Fund Holders In Q3 2024: 25

Leslie’s, Inc. (NASDAQ:LESL) is a highly cyclical firm that sells swimming pool, spa maintenance, fitness, and other items. As a result, its fate is dependent on the health of consumer spending in the US. While the recent high interest rate and inflation environment has created turmoil for Leslie’s, Inc. (NASDAQ:LESL), data for the third quarter shows that spending has slightly picked up. Leslie’s, Inc. (NASDAQ:LESL)’s fiscal fourth quarter revenue dropped by 8.3% while its first quarter of fiscal 2025 guidance also fell short of analyst estimates as management warned that lower spending particularly for big-ticket items is hurting the firm. However, data shows that during its ongoing quarter, Leslie’s, Inc. (NASDAQ:LESL)’s sales dropped by a maximum of 3% which was lower than the previous quarter’s 8.3% drop.

Ariel Fund mentioned Leslie’s, Inc. (NASDAQ:LESL) in its Q3 2024 investor letter. Here is what the fund said:

“By comparison, U.S. direct-to-consumer pool and spa care services company, Leslie’s, Inc. (NASDAQ:LESL) was the greatest detractor from returns over the period. The company pre-announced disappointing operating results and significantly reduced full-year guidance. Soft consumer demand driven by weather-related headwinds and increased price sensitivity on large discretionary purchases weighed on the top-line. Product margins also remain under pressure as the company struggles to unwind its higher-cost inventory. In response, LESL hired a new CEO, Jason McDonell, and our channel checks suggest his background in retail and consumer products is well-suited to drive a performance recovery. Although we have been deeply disappointed with this investment, we are encouraged by the leadership change as well as improving trends on the back of warmer and drier weather conditions. At today’s valuation, LESL appears to have more upside than downside and the company’s loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience serve as important differentiators.”