This Pool Supplies Stock Is Heating Up With The Weather

Leslie's Inc LESL thinks there could be 200,000 new swimming pools purchased in 2020 and 2021, wealth advisor Josh Brown said Tuesday on CNBC's "Fast Money: Halftime Report."

Echoing thoughts from Benzinga's Jason Raznick, Brown said demand for swimming pools is off the charts, adding that pool permits have seen 32% year-over-year growth.

The total addressable market is massive and Leslie's is a dominant player in the space, he said.

Related Link: Sign Of Summer? Pool, Leslie's Trade Higher After Big Earnings Beat

Brown's Thesis: There is a secular "deurbanization trend" that will be a major tailwind for pool supply companies, according to Brown. It's not about the money spent on installing a new pool, rather the stream of revenue that follows via pool maintenance.

"You can't install [a pool] and then get bored of it in two years and let it go," Brown said.

Leslie's competitor, Pool Corp POOL, recently reported earnings per share of $2.32, more than doubling the estimate of $1.15.

Leslie's last reported earnings on Feb. 4 The company announced record results and raised its full-year outlook for 2021.

Brown said he bought shares recently and plans to hold for years while adding to his position on weakness.

LESL Price Action: Leslie's was up 5% to 29.40 at last check Tuesday.