LESL Should I Buy
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Leslie's Inc (LESL) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is facing significant challenges, including declining revenue, negative earnings, bearish technical indicators, and a lack of positive catalysts. Analysts have lowered price targets, and hedge funds are selling heavily. While the company is attempting a turnaround, there is no clear evidence of recovery yet, making it prudent to hold off on investing in this stock for now.
The technical indicators for LESL are bearish. The MACD is slightly positive but contracting, RSI is neutral at 30.923, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 1.205), with resistance levels at R1: 1.472 and R2: 1.555. The overall trend suggests weakness.
The company has outlined a path toward financial recovery and right-sizing the business, as noted by analysts. Gross margin increased by 7.11% YoY in Q4 2025.
Hedge funds are selling heavily, with a 986.28% increase in selling activity last quarter. Analysts have significantly lowered price targets, citing market share losses, margin erosion, and a prolonged turnaround. The company reported a YoY revenue decline of 2.17% in Q4 2025, with a net income loss of -$162.8M.
In Q4 2025, revenue dropped by 2.17% YoY to $389.2M. Net income improved but remained negative at -$162.8M, up 1540.79% YoY. EPS also improved but was still negative at -17.54, up 1539.25% YoY. Gross margin increased to 38.56%, up 7.11% YoY.
Analysts have downgraded their price targets significantly, with the most recent targets ranging from $3 to $4. Analysts maintain neutral ratings, citing the need for consistent execution and a clearer turnaround trajectory before becoming more constructive on the stock.
