Latham Group, Inc. (SWIM)
Industrials
- Fundamental
- 3
- Sentiment
- 3
- Technical
- 2
Do Nothing: countertrend limit - price 6.20 below the SMA50 (6.53) with MACD line -0.14 < 0; a pullback/oversold bid into a live short-term downtrend, not a dip within an uptrend. No breakout stop qualifies either: the nearest settled swing high 6.79 (above the 09-16 high 6.78) gives R/R 0.84 (< 1.0), and a shallower trigger above Friday's 6.35 high is not a valid momentum-breakout pattern with price below all key MAs and MACD negative. Chart scores 2/5.
Company overview
Latham Group, Inc. specializes in the design, manufacture, and distribution of residential in-ground swimming pools across North America, Australia, and New Zealand. The company offers a range of pool types along with essential accessories like covers and liners. Founded in 2018 as Latham Topco, Inc., it rebranded to its current name in 2021 and is headquartered in Latham, New York.
Fundamental
fairThe company shows revenue growth but faces thin profitability and sensitivity to economic cycles.
Mixed setup. FY2025 showed a rebound (higher sales and positive GAAP net income), and Q2 2026 revenue grew double-digits year-over-year, but trailing profitability is still thin (sub-1% net margin) and interest coverage is only modestly above 1x. Liquidity looks adequate with an undrawn revolver and no disclosed covenant issues, yet valuation is not a clear bargain given low free-cash-flow yield and sensitivity to the housing/consumer cycle.
Sentiment
fairThe market rewarded the Q2 report, but no new catalysts are present to drive further sentiment.
Dominant short-term driver is the market-rewarded Q2 2026 earnings print (announced, 2026-08-04): net sales +14.4% to $197.5M, full-year guidance raised, and shares +26.8% on the report — a genuine rewarded-bullish element that clears the mixed-setup bar, even though EPS/EBITDA missed forecasts and net income fell year over year. Sentiment delta is indeterminate (sparse on-topic baseline); Red-Flag Screen clean; no cap fired, and with no forward-dated catalyst the setup is a rewarded-but-trailing, partially priced one.
Technical
weakThe stock is in a downtrend below key moving averages, with oversold conditions suggesting potential for a bounce.
SWIM is in a two-week slide from 7.10 (09-04) to 6.20 (-12.7%), closing below the SMA20 (6.73), SMA50 (6.53) and EMA9/EMA21 (6.40/6.59) with MACD below its signal and below zero (line -0.14, histogram -0.10). RSI14 37.62 and Williams %R -87.04 show short-term oversold conditions and Friday printed a recovery wick off 6.06 on ~2.4x average volume, but ADX 23.51 confirms no trend strength and momentum remains negative. This is a downtrend with bounce potential, not a tradeable bullish setup: a pullback/oversold limit is countertrend (price < SMA50 with MACD < 0), and no momentum breakout qualifies (stop 6.79 anchored above the 09-16 swing high 6.78 gives R/R 0.84). Score 2/5.
You’re looking at 2026-09-19 — more than 2 trading days ago.
Subscribers saw this then, and see today’s score, verdict and trade plan now.
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