Pool on Track for Lowest Close Since May 2020 — Data Talk

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized consumer services stocks fared in Q3, starting with Matthews .

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 11 specialized consumer services stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 19.3% while next quarter’s revenue guidance was in line.

While some specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.

Best Q3: Matthews

Originally a death care company, Matthews International is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $318.8 million, down 28.6% year on year. This print exceeded analysts’ expectations by 9.6%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Matthews pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 9.5% since reporting and currently trades at $27.00.

H&R Block

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

H&R Block reported revenues of $203.6 million, up 5% year on year, outperforming analysts’ expectations by 1.5%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

H&R Block pulled off the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.4% since reporting. It currently trades at $43.53.

1-800-FLOWERS

Founded in 1976, 1-800-FLOWERS is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Interestingly, the stock is up 33.3% since the results and currently trades at $4.66.

Read our full analysis of 1-800-FLOWERS’s results here.

Pool

Founded in 1993 and headquartered in Louisiana, Pool is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $1.45 billion, up 1.3% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced full-year EPS guidance slightly topping analysts’ expectations but organic revenue in line with analysts’ estimates.

The stock is down 20.5% since reporting and currently trades at $236.57.

Read our full, actionable report on Pool here, it’s free for active Edge members.

Mister Car Wash

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.

Mister Car Wash reported revenues of $263.4 million, up 5.7% year on year. This number beat analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter as it also recorded a solid beat of analysts’ same-store sales estimates.

The stock is up 8% since reporting and currently trades at $5.62.

Read our full, actionable report on Mister Car Wash here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Apparel and Accessories company Stitch Fix jumped 4.8%. Is now the time to buy Stitch Fix? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Delta jumped 4.6%. Is now the time to buy Delta? Access our full analysis report here, it’s free for active Edge members.
• Specialized Consumer Services company Pool jumped 4.8%. Is now the time to buy Pool? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company Marriott jumped 4.8%. Is now the time to buy Marriott? Access our full analysis report here, it’s free for active Edge members.
• Specialized Consumer Services company Frontdoor jumped 4.8%. Is now the time to buy Frontdoor? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Marriott (MAR)

Marriott’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock dropped 5.1% on the news that the company reported disappointing fourth-quarter results: While full-year EPS fell short of expectations, fourth-quarter revenue and EPS slightly exceeded estimates. However, full-year guidance implied adjusted EPS of $9.82 to $10.19, suggesting moderate growth, and RevPAR (sales generated by each available room - a key performance indicator) growth is expected to decelerate to 2%-4%, which is even more worrisome​. Overall, this was a weak quarter.

Marriott is up 7.8% since the beginning of the year, and at $295.88 per share, it is trading close to its 52-week high of $304.45 from February 2025. Investors who bought $1,000 worth of Marriott’s shares 5 years ago would now be looking at an investment worth $2,404.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including Pool and its peers.

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 10 specialized consumer services stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 22.2% while next quarter’s revenue guidance was 0.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.8% since the latest earnings results.

Pool

Founded in 1993 and headquartered in Louisiana, Pool is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $1.45 billion, up 1.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with full-year EPS guidance slightly topping analysts’ expectations but organic revenue in line with analysts’ estimates.

“Building on momentum from the second quarter, we achieved sales growth in the third quarter of 2025. Our dedicated teams delivered not only top-line growth but also expanded gross margin. We continued to strengthen our industry leading position by adding four new locations this quarter and elevated our customer experience through expanded private-label offerings and strategic product partnerships. This month, we proudly mark our 30th anniversary as a public company listed on the Nasdaq Stock Market, a milestone made possible by our team’s long-term strategic focus and ongoing commitment to offer our customers the best value proposition in the industry,” commented Peter D. Arvan, president and CEO.

Unsurprisingly, the stock is down 16.5% since reporting and currently trades at $249.

Read our full report on Pool here, it’s free for active Edge members.

Best Q3: H&R Block

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

H&R Block reported revenues of $203.6 million, up 5% year on year, outperforming analysts’ expectations by 1.5%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $47.90.

Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: 1-800-FLOWERS

Founded in 1976, 1-800-FLOWERS is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS and revenue estimates.

As expected, the stock is down 7% since the results and currently trades at $3.25.

Read our full analysis of 1-800-FLOWERS’s results here.

Frontdoor

Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor is a provider of home warranty and service plans.

Frontdoor reported revenues of $618 million, up 14.4% year on year. This result beat analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.

Frontdoor scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 22.6% since reporting and currently trades at $50.85.

Read our full, actionable report on Frontdoor here, it’s free for active Edge members.

Carriage Services

Established in 1991, Carriage Services is a provider of funeral and cemetery services in the United States.

Carriage Services reported revenues of $102.7 million, up 2% year on year. This print surpassed analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter as it also produced a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

The stock is down 5.1% since reporting and currently trades at $41.34.

Read our full, actionable report on Carriage Services here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.