Leslie’s Stock Navigates Choppy Waters Amidst Glimmers of Hope

Leslie’s Inc shares are experiencing significant turbulence in the markets. Despite showing modest signs of recovery during Friday’s session, broader technical indicators and analyst sentiment point to continued challenges for the pool and spa care retailer.

Recent Price Action Tells Conflicting Story

The equity managed a 2.80% gain on Friday, closing at $3.12 per share. This upward movement was accompanied by increased trading activity, with volume reaching 149,000 shares—a notable jump of 21,000 from the previous session. However, this minor rebound does little to offset the substantial losses witnessed over the past ten trading days, during which the stock plummeted 27.1%. Declines occurred in seven of those ten sessions, painting a concerning picture for investors.

Technical Indicators Present Mixed Signals

Market technicians observe conflicting patterns in the stock’s chart. Both short-term and long-term moving averages currently flash sell signals, suggesting the potential for further declines. Significant resistance levels loom at $3.40 and $4.56, creating substantial barriers to any sustained recovery.

Nevertheless, some technical elements offer cautious optimism. A pivot point buy signal triggered on Thursday preceded Friday’s rally, while the 3-month MACD indicator also suggests buying momentum. The shares are currently trading just above their 52-week low of $2.92, a stark contrast to the yearly peak of $72.60.

Should investors sell immediately? Or is it worth buying Leslies Inc?

• Latest Movement: +2.80% to $3.12
• Trading Volume: Increased—a positive short-term signal
• Recent Performance: -27.1% over 10 days
• Resistance Levels: $3.40 and $4.56
• Support Level: Near $3.04

Analyst Consensus and Corporate Outlook

Market experts maintain a cautious stance. Eight analysts unanimously rate Leslie’s as a “Hold,” yet their collective price target of $1.66 conveys a more pessimistic underlying message, implying no expected growth from current valuation levels.

The company’s own projections for fiscal 2025 anticipate revenue declining between 7.2% and 9.0%. This would translate to total revenue of approximately $1.210 to $1.235 billion. In response, management is implementing a strategic pullback in capital expenditures, reducing them from $47 million in 2024 to just $30 million planned for 2025, while prioritizing debt reduction.

The critical question remains whether the stock has found its bottom. The forecast for the fourth quarter provides little encouragement, projecting continued high-single-digit revenue declines and margin erosion due to persistent cost pressures. With a market capitalization now standing at a mere $28.887 million, Leslie’s faces a pivotal period that will test its resilience and long-term viability.