#7 - Acushnet Holdings (NYSE:GOLF)
Acushnet Holdings (NYSE:GOLF) is the parent company of Titleist and other major golf brands. The company is not only a powerhouse of the industry but it is also a company with a fortress balance sheet. While revenue took a hit in the early portion of the year, the rebound is strong and one that has legs. The company’s 3rd quarter sales were driven by an increase in the sales of balls and shoes which they directly relate to a “significant increase in rounds of play”.
According to data from Golf Datatech, there was a substantial decline in rounds played during March and April but rebound strongly in June and July. The uptick in June and July is enough to show YOY growth for the year-to-date period. The number of rounds played has only been positive on a YOY basis since. There were 440 million rounds played in 2019, the total number in 2020 could be well over 460 million.
About Acushnet
Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear.
Read More - Current Price
- $74.28
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.40 (3.9% Downside)
If there is one thing clear, it is that earnings within the outdoor recreational stocks are booming. Not only is demand high, but it is also sustainable because, let’s face it, gyms and theme parks aren’t quite as attractive as they used to be. And outdoor recreation provides such a value. The longer it takes for things to get “back to normal,” the less like normal things are going to be.
The takeaway for investors is this. Within the sector, there are blue chips, tech stocks, growth stocks, dividend stocks, and more. There’s are compelling reasons to own outdoor recreation stocks. Now it’s time to find the right one for your portfolio.
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