#7 - Callaway Golf (NYSE:ELY)
The last stock on our list of outdoor living stocks is Callaway Gold (NYSE:ELY). Like many outdoor living stocks, ELY stock has fallen on hard times since hitting an all-time high in 2021. There are two catalysts that investors need to consider.
First, after nearly a decade of relatively flat revenue growth, the golf industry, in general, is in the middle of a renaissance. Some of that is due to individuals taking up or returning to the sport during the pandemic. And some of it has to do with the popularity of venues such as Top Golf which merge golf and entertainment in a more accessible way.
But the larger catalyst that I see is the migration of many Americans to more “appealing” locations. If you live in a northern state, you know that golf is not on your to-do list for several months of the year. If you move to a warmer location (Florida for example), you may now be looking to play golf year-round.
About Callaway Golf
Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories. It operates through three segments: Topgolf; Golf Equipment; and Apparel, Gear and Other. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, multiple bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology used by independent driving ranges and broadcast television; and World Golf Tour digital golf game.
Read More - Current Price
- $0.00
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
As you can see from this list, the category of outdoor living stocks is diverse. That can be both good and bad. It's good because investors have a lot of different names to choose from. It can be bad if you're a fund investor because it may give you exposure to some lackluster performers amidst some star performers.
That reality is being born out in the year-to-date performance of the category. Outdoor living stocks are down about 28%. While that doesn't inspire a lot of confidence, it's on par with work-from-home stocks that are down approximately 22%. More importantly, it's “less bad" than many other categories. For example, e-commerce stocks are down 56%, social media stocks are down 48%. Both of these categories were big pandemic winners as well.
So when viewed through that lens, outdoor living stocks are outperforming the broader market. So before you sell in May and go away, be sure to take a close look at this list of stocks that are likely to have a strong summer.
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