Sporting Goods Equipment Small Cap with Relative Strength
Acushnet (GOLF) a strong trending chart and shares +20% YTD as a top performing small cap. GOLF is a global leader in the design, development, manufacture and distribution of performance‑driven golf products. Titleist, one of golf’s leading performance equipment brands, and FootJoy, one of golf’s leading performance wearable brands are its main drivers. While rounds of play had been relatively stable for years, the game experienced an approximate 8% global increase in rounds in both 2021 and 2020 as dedicated golfers took full advantage of favorable weather, hybrid work schedules and an increase in discretionary time. The game of golf remained in high demand in 2022, with the number of rounds played approximately 16% higher than the number of rounds played in 2019. GOLF has a market cap of $3.32B and trades 16.85X Earnings, 11.3X EBITDA and 1.46X Sales with a 4.8% FCF yield and 1.53% dividend yield. GOLF revenues are seen rising 3.6% in 2023 and 2.2% in 2024 with EPS growth of 3.3% and 6.5% respectively, a lower growth name. GOLF has a dominant market share in golf balls and accounts for 30% of its revenues. The professional game is off to a compelling start in ’23 and this energy around the tours is an important catalyst as the golf season ramps up to the Masters and a full global opening in Q2.