Leslies Inc | LESL | Long at $0.41**VERY risky trade - 25% or more risk of bankruptcy**
Leslies NASDAQ:LESL is a direct-to-consumer pool and spa care brand in the U.S., selling chemicals, equipment, and services. The stock dropped 88.86% last year due to weak demand, flat revenue, shrinking gross margins from stock write-downs, higher rent, shipping costs, and an earnings miss (-$0.25 vs. -$0.244). High debt, market share losses to e-commerce, and a competitive pool supply market also contributed.
On a positive note, the company generated $1.33 billion in revenue for fiscal year 2024. New leadership has entered the picture, cost-cutting is starting to happen, and summer season may boost pool sales. While 2025 is still projected to be a rough year, revenue is forecasted to grow 6.4% in 2026 and 2027 and earnings are likely to turn positive (based on company statements). While this is a *highly risky* play and there are absolutely better companies out there, I think there is a chance this ticker may get some steam in the near future. 7% short interest, 176 million float.
Thus, at $0.41, NASDAQ:LESL is in a personal buy zone.
Targets into 2027:
$1.00 (+143.9%)
$2.00 (+387.8%)
