A Tradition Unlike Any Other… Masterful Golf Stocks to Keep Your Portfolio on Par
Tis the season for azaleas to be in bloom and Augusta to be classically attended as the 88th Masters Tournament kicks off. This tournament has become even more exciting as both the PGA and LIV players are in attendance. While contention for the green jacket ensues, PRISM MarketView has kept on course with featuring some golf related stocks that could drive an eagle-worthy portfolio, but only if putted correctly.
Topgolf Callaway Brands
The PRISM Consumer Products Index player, Topgolf Callaway Brands Corp (MODG) is a play that is reminiscent of McIlroy as its played nicely in portfolios but sees mishaps more recently. Its YTD return is in the green at 14% yet over the past year it’s been down close to 30%. In late March, the stock saw a boost on a Street rumor that didn’t make the cut. Additionally, the company announced it completed a debt repricing on its existing $1.24Bn Topgolf Callaway Brands first-lien term loan due 2030, lowering its future interest rate for a total reduction of 60 basis points.
Big 5 Sporting Goods
To those looking for a golf equipment retail stock bogey, Big 5 Sporting Goods Corp (BGFV) has been down over 60% in the past year and in the red on its YTD return of -45%. In its recent Q4 earnings announcement the company was rained out as it fell short of its EPS guidance of ($0.38) – ($0.40), reporting ($0.41). Management furthered short sellers thesis by lowering guidance and cited the outlook for Q1 to remain dismal, as it relates to sales and seasonality. For owning a stock like this you should get a free bowl of soup.
Acushnet Holdings
Acushnet Holdings Corp. (GOLF) doesn’t get any closer to being related to the sport as it has secured the ultimate ticker. This performance-driven golf products company sits behind Titleist and FootJoy brands. Over the past year, the company has had a nice drive that’s put its share price up ~22%. However, YTD the share price is chipping its way to the green as its down ~2.5%. The company’s recent Q4 earnings announcement was mostly in line on net income and adjusted EBITDA but missed on revenues with some more positive FY’24 guidance. Additionally, in the company’s recent 8-K filing, it disclosed an agreement to repurchase up to an additional ~$37.5M of its stock from holder Magnus under the existing repurchase agreement.
