LESL Should I Buy
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Leslie's Inc (LESL) is not a good buy for a beginner investor with a long-term strategy at this time. The stock is facing significant challenges, including declining revenue, bearish technical indicators, and negative sentiment from analysts and hedge funds. While there are no strong positive catalysts or recent influential trades to support a bullish case, the stock's financial performance and market trends suggest caution.
The technical indicators for LESL show a bearish trend. The MACD is slightly positive at 0.0125, but the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The RSI is neutral at 32.79, and the stock is trading near its support level of 0.896, indicating weak momentum.
No significant positive catalysts identified. The MACD is slightly positive, but this is not strong enough to outweigh other bearish signals.
Analysts have downgraded the stock multiple times, with Morgan Stanley lowering the price target to $1 and maintaining an Underweight rating.
Hedge funds are aggressively selling, with a 986.28% increase in selling activity last quarter.
Revenue has dropped significantly (-16.04% YoY), and gross margin has declined (-16.53% YoY).
No recent news or influential trades to support a bullish outlook.
In Q1 2026, Leslie's Inc reported a revenue decline of 16.04% YoY to $147.13M. While net income and EPS improved significantly (up 86.18% and 85.06% YoY respectively), they remain negative at -$82.97M and -8.92 EPS. Gross margin dropped to 22.73%, reflecting operational challenges.
Analysts have a negative outlook on LESL. Morgan Stanley recently lowered its price target from $1.50 to $1 and maintained an Underweight rating, citing low visibility for a sales turnaround and declining unit growth. Previous downgrades also highlight prolonged strategic challenges and market share losses.
