Given the sport’s continuous expansion, the golf sector is one of the more undervalued locations to search for investment opportunities right now. According to Statista, revenue from golf courses and country clubs in the United States is expected to reach $24.6 billion by 2024, implying that there will undoubtedly be businesses that prosper as a result. It’s also worth noting that golf is a sport that is enjoyed by people of all ages, implying that these things can be sold to virtually everyone.
When you consider how expensive golf equipment and gear are, as well as how popular the sport is in countries all over the world, investing in stocks with golf exposure could be a hole-in-one opportunity. That’s why we’ve compiled a list of three golf stocks that look tee-rific right now so you can get to know the companies primed to benefit from the industry’s sustained expansion.
Acushnet Holdings Corporation (Acushnet)
This is perhaps the finest golf stock to buy right now, as it’s a corporation that owns some of the most popular golf products. Acushnet Holdings Corp is a golf product design, development, manufacturing, and distribution corporation that makes golf balls, clubs, shoes, gloves, and apparel. Acushnet Holdings is enjoying a healthy bounce in sales as golfers return to the links following the pandemic, thanks to well-known brands like Titleist, FootJoy, and KJUS.
Acushnet recently announced record first-quarter profitability, with net sales up 42 percent year over year to $581 million. Sales of Titleist-branded equipment increased 51% year over year and 38% year over year in 2019, demonstrating the brand’s strength in the golf community. The stock is on the verge of breaking out to new all-time highs, and it has held its post-earnings gap well, indicating that investors are confident in the company. The stock also pays a 1.25 percent dividend yield, which is another compelling reason to keep it on your radar right now. The Callaway Golf Company is a company that manufactures golf clubs.
Callaway Golf Co
A brand that recently received a lift from Phil Mickelson’s triumph at the PGA Championship event last week, is another great alternative in the golf market. Because Callaway is Mickelson’s equipment sponsor, the company’s logo was prominently displayed during one of the most memorable golf tournaments in recent memory. Golf clubs, golf balls, golf bags, and other golf-related items are designed, manufactured, and sold by this corporation. Callaway Golf is regarded as one of the best golf companies for a reason: the company’s products are highly regarded among golf aficionados.
Given its recent market performance, Callaway Golf is another stock to consider adding to your portfolio. The stock has risen more than 52 percent year to far and continues to set new highs. Callaway’s first-quarter earnings were pretty excellent, with consolidated net revenue of $652 million, up 47 percent year over year. It’s also worth mentioning that the company combined with Topgolf, a prominent tech-enabled golf entertainment company might be a big growth driver in the future.
Finally, thanks to the company’s golf gear goods and its squad of well-known professional golfers such as Tiger Woods, Brooks Koepka, and Rory McIlroy, Nike offers another exciting approach to obtaining exposure to the golf market. It’s a business that provides high-quality Best Golf Shoes for Men, Golf apparel, equipment, and accessories that are both fashionable and readily identifiable. Nike is a wonderful stock to consider investing in because of its well-known brand and expanding internet sales.
Keep in mind that the resumption of sports following the pandemic should help Nike substantially, including sales of the company’s golf equipment. Nike recently announced Q3 earnings, revealing that Nike Brand digital sales increased by 59 percent year over year, reaffirming the company’s robust e-commerce development. The company has a healthy financial sheet with plenty of liquidity and a track record of coming up with new methods to grow the business, both of which are appealing attributes to look for in a potential investment.