(LESL) Leslies - Ratings and Ratios

Leslies, Inc. is a leading direct-to-consumer brand for pool and spa care in the United States, offering a comprehensive range of products and services catering to the needs of residential, professional, and commercial consumers. With a history dating back to 1963, the company has established itself as a trusted provider of pool and spa supplies, equipment, and maintenance solutions, leveraging both online and offline channels to reach its customers.

The companys product portfolio encompasses a broad spectrum of pool and spa maintenance items, including chemicals, equipment, and cleaning accessories, as well as safety, recreational, and fitness-related products. Additionally, Leslies provides installation and repair services for pool and spa equipment, further solidifying its position as a one-stop-shop for pool and spa care needs. The companys commitment to customer service is underscored by its in-store water testing and analysis services, available free of charge or at a commercial grade, depending on the customer.

From a market perspective, Leslies operates within the Other Specialty Retail sub-industry, as classified by the GICS. With a market capitalization of $135.72 million, the companys stock has exhibited significant volatility, as reflected in its Average True Range (ATR) of 0.07, equivalent to 8.03% of its last price. Analyzing the stocks moving averages, we observe a bullish signal, as the short-term SMA20 (0.66) and SMA50 (0.73) are both below the current price of 0.88, indicating a potential upward momentum.

Considering the fundamental data, Leslies has a Return on Equity (RoE) of 14.26, suggesting a relatively healthy profitability profile. However, the absence of a reported P/E ratio and forward P/E ratio complicates the valuation analysis. To forecast Leslies stock performance, we can combine the insights from both technical and fundamental data. Given the current prices position relative to its moving averages and the ATR indicating a relatively high volatility, a potential trading strategy could involve closely monitoring the stocks price action around key support and resistance levels. If the company can maintain its RoE and expand its market share, a potential target price could be around $1.20-$1.50 in the short to medium term, representing a 36%-70% increase from the current price.

To validate this forecast, it is essential to continue monitoring Leslies financial performance, particularly its ability to maintain profitability and expand its customer base. Additionally, keeping a close eye on industry trends, competitor activity, and macroeconomic factors that could impact the demand for pool and spa care products will be crucial in refining the forecast and adjusting the trading strategy accordingly.