I recently wrote about one of my favorite picks at this moment in time -- $POOL -- and why I will keep adding to it through July.

Currently, the company is a core holding for my daughter and myself, which is the only stock where that is the case so far.

Aside from its leadership position and past outperformance, there are three specific reasons why history may suggest Pool is set to beat the market over the long term if we buy today.

1) Its Return on Invested Capital (ROIC) of 25% is good for the top quintile among its S&P 500 peers. Generally, stocks in the top quintile of ROIC rankings tend to outperform. Specifically, from 2003 to 2020, the top quintile of ROICs in Motley Fool's investable universe nearly doubled the returns of their lower-ranked peers, making Pool's figures intriguing.

2) Pool's 1.2% dividend has grown by 20% annually over the last decade and has been raised for 12 straight years. Better yet, however, its payout ratio has declined from 35% to 23%, highlighting its rapid earnings growth and pointing to future dividend increase potential. With dividend growth stocks in the S&P 500 beating the broader index by 2.5% annually since 1973, Pool again looks promising.

3) Trading at just 22 times earnings, Pool's P/E ratio in 2023 has been the lowest it has been compared to any point across the last decade -- where it averaged 30. While it will take time for the pool industry to recover from its currently weak macroeconomic environment, today's price looks great for investors looking decades ahead.

Thanks to these three historical indicators -- and the fact the Pool generates 83% of its sales from non (or somewhat) discretionary sales like maintenance, repairs, remodeling, and reonvations -- Pool is my favorite buy for July.

Would love to hear what you all think of this pick for the long haul.

Thanks as always for reading. 🙏