In this article, we will look at the 10 Best Sporting Goods Stocks To Invest In Now.
The sports industry typically generates millions of dollars through events, promotions, and endorsements. It is one of the few sectors that continued to prosper, even during the pandemic. The global sporting and athletic goods market is projected to grow significantly, driven by consumer health awareness and rising demand for fitness products. The market value reached $52.02 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% through 2032, due to innovation in sporting technology and materials. Sports stocks have climbed more than 10% year-to-date, pushing the sports index of the broader market to its highest level since July of last year.
The market has experienced a sudden increase in demand as it recovers from the pandemic. The pandemic initially disrupted the market with postponed events like the Olympics and supply chain challenges. However, increased consumer awareness around fitness and health post-pandemic has further fueled the global demand for sports and sporting goods.
This growth in demand has varied across regions. Western Europe and Asia Pacific have been at the forefront of the sales recovery, while Latin America has maintained its impressive growth momentum. North America also achieved steady progress, building on its previous year’s performance. Looking ahead, Latin America and Southeast Asia show the greatest potential, with growth rates of 22% and 11%, respectively, in 2023. Meanwhile, although China rebounded after a challenging 2022, analysts remain cautious about future growth due to ongoing economic difficulties.
Global economic challenges, such as high inflation and uncertainty, are shaping consumer behavior. Rising prices are a top concern for consumers worldwide, affecting purchasing power and brand loyalty. Despite these challenges, sports participation is increasing in some regions, particularly in activities that are accessible, social, and less time-consuming. For instance, customer preference for pickleball and paddle tennis has increased by 159% since the pandemic. As consumer preferences evolve, companies are adapting their strategies to cater to different demographics, particularly the expanding older population.
Rising Demand for Sustainable Sporting Goods
One of the key trends in this industry is the increasing preference for sustainable sporting goods. Despite economic pressures, many consumers are willing to pay 9.7% more on average for products that have a positive environmental impact. Legislation is also playing a big role in driving sustainability. Laws like the U.S. Inflation Reduction Act and the EU Green Deal are pushing investments in green energy and sustainable solutions, including in sporting goods. The EU’s Ecodesign for Sustainable Products Regulation and Waste Framework Directive are setting stricter standards for product design, recyclability, and end-of-life management. Moreover, regulations like the EU Corporate Sustainability Reporting Directive are increasing the pressure on companies to be transparent about their environmental and social impacts.
To address these challenges and capitalize on emerging opportunities, more than 80% of sporting goods companies, both large and small, are adopting ambitious sustainability goals like CO2 reduction targets. By adopting sustainable practices, companies can not only benefit the planet but also boost brand reputation and attract eco-conscious consumers. With this context in mind, let’s take a look at the best sporting goods stocks to invest in now.
Our Methodology
We analyzed multiple stock screeners and ETFs to compile a list of the best sporting goods stocks. From this list, we identified the 10 stocks most favored by elite hedge funds as of Q3 2024. The hedge fund sentiment data was obtained from Insider Monkey’s database of 900 funds. The best sporting goods stocks have been ranked in ascending order of the number of hedge funds holding a stake in them.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Sporting Goods Stocks to Invest In Now
10. Acushnet Holdings Corp. (NYSE:GOLF)
Number of Hedge Fund Holders: 23
Acushnet Holdings Corp. (NYSE:GOLF) is a leading golf company that designs, manufactures, and distributes golf products worldwide. Its iconic brands, Titleist and FootJoy, offer a wide range of products, including golf balls, clubs, accessories, apparel, and footwear.
Acushnet Holdings Corp. (NYSE:GOLF) reported solid third-quarter results with a 4.6% increase in net sales and an 8.7% increase in adjusted EBITDA. The company’s strong performance was driven by the success of new Titleist golf club products. Golf ball sales are expected to drop slightly in the second half of the year as the company and its partners reduce inventory ahead of the January launch of the new Pro V1 models. This launch, celebrating 25 years of the Pro V1, is on track. The new models have already been introduced on global tours and have received great feedback from players. Production has been fully switched to the new models to prepare for the release. Titleist golf clubs saw strong growth of 19% in the third quarter, thanks to the successful launch of the GT drivers and Fairway Metals.
During the quarter, the company also bought back 1.1 million shares for a total of $70 million. This included $37.5 million worth of shares repurchased from Magnus as part of the previously announced March 2024 share purchase agreement. Management remains optimistic about its full-year outlook and has upheld its revenue guidance. Acushnet Holdings Corp. (NYSE:GOLF) continues to invest in its brands and product innovation to drive long-term growth.
Analysts believe that the company’s consistent earnings and strong visibility in an uncertain economic environment highlight the resilience of the golf industry and the strength of Acushnet’s brands. As Acushnet Holdings Corp. (NYSE:GOLF) enters 2025, it maintains a solid balance sheet and healthy cash flow, with a focus on sustained business investments and returning value to shareholders.
9. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)
Number of Hedge Fund Holders: 25
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is a major sporting goods and outdoor recreational retailer in the US. It offers a wide range of products, including camping, fishing, and hunting gear, fitness equipment, and recreational items. The company is headquartered in Katy, Texas.
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) is focusing on growth through new stores, a stronger online presence, and a loyalty program. The company remains optimistic with positive growth trends and plans to open 160-180 stores in the next five years. In 2024, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) opened 16 new stores, representing approximately 6% unit growth. Since the start of this expansion in fiscal 2022, a total of 39 stores have been added, bringing the overall store count to 298.
The company expects new stores to generate between $12 million and $16 million in sales during their first year, depending on whether the store is in a new or existing market, market size, and population demographics. Moreover, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) aims for all new stores to have a positive four-wall EBITDA contribution in their first year, which is expected to result in returns on invested capital of over 20% over the life of these investments.
Moreover, Academy Sports and Outdoors, Inc.’s (NASDAQ:ASO) board recently approved a new $700 million share repurchase program, highlighting confidence in the company’s performance. This decision aligns with the capital allocation strategy, which prioritizes returning value to shareholders while continuing to invest in strategic initiatives aimed at driving sustainable long-term growth. Since 2021, the company has bought back approximately $1.4 billion worth of shares. On average, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) repurchases around $200 million in stock each quarter. These factors make ASO one of the best sporting goods stocks to invest in now.
8. Foot Locker, Inc. (NYSE:FL)
Number of Hedge Fund Holders: 27
Foot Locker, Inc. (NYSE:FL) is a global retailer specializing in footwear and apparel. It operates various brands, including Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. Customers can shop at physical stores, online, or through mobile apps. The company has been around since 1879 and is headquartered in New York City.
The company reported a 2.4% increase in total comparable sales for the quarter, driven by share gains in the global Foot Locker and Kid Foot Locker banners, which saw a 2.8% rise. Champs Sports and WSS also returned to positive growth, with increases of 2.8% and 1.8%, respectively, driven by strong back-to-school performance.
Foot Locker, Inc.’s (NYSE:FL) gross margin also improved by 230 basis points year-over-year. This was primarily driven by a recovery in merchandise margins compared to the higher promotional activity of the prior year. Meanwhile, Foot Locker, Inc.’s (NYSE:FL) digital sales penetration increased by 60 basis points year-over-year, reaching 17.6% of total sales for the quarter. The company is on track to achieve its target of approximately 25% e-commerce penetration by 2026.
Foot Locker, Inc. (NYSE:FL) has also made progress in its partnership with Nike over the past few quarters. The company has a long-standing relationship with Elliott Hill. Ongoing collaborations include the expansion of their work with Nike and Jordan Brand on the clinic and the Foot Locker Home Court basketball experience. In the short term, the company is on track to return to growth with Nike in the fourth quarter, supported by a strong launch calendar compared to both the third quarter and the same period last year.
Jim Cramer also displayed confidence in the company’s long-term prospects in September. Here’s what he said:
“Second down retailer hits too close to home. I’m talking about Foot Locker. As a former holding of the Charitable Trust, we bailed on in June. Absolute numbers here were not as strong as ANF’s. Foot Locker still firmly in turnaround mode under new CEO Mary Dillon. I should say relatively new, but they were still better than expected across the board.
“I actually like the quarter. After five quarters of same-store sale shrinkage, Foot Locker returned to growth, up 2.6%. Handily beat the expectations. That should have been enough to keep the stock a little bit higher. Gross margins expanded. That should have been enough. Inventories decreased by 10%. That should have been enough. And they only lost 5 cents per share when Wall Street expected a 7-cent loss. But they still lost money.
“How come the stock lost 10%? Well, first, the stock came into the quarter again, like some of these others, very hot, up 45% from the last time the company reported in May. Second, I think the sellers are basically saying that they don’t believe Foot Locker can make its full-year forecast because they’ll need a couple of strong quarters to make the numbers, especially on the earnings front.
“But having listened to the conference call, management laid out some major positives. Most important of all, Foot Locker’s relationship with Nike seems to have improved substantially. Nike needs them more than Nike thought. That’s very important. It ain’t just old DTC at the end of the day.
Foot Locker’s a turnaround story. It’s going to take at least a couple more quarters to unfold, but it’s going to unfold. Stock may have gotten ahead of itself over the summer, one reason why we sold it for the Charitable Trust, but if you have a longer-term view, I think this is a viable dip.”
7. Under Armour, Inc. (NYSE:UA)
Number of Hedge Fund Holders: 28
Under Armour Inc. (NYSE:UA) is a global leader in performance apparel, footwear, and accessories for men, women, and youth. The company offers a range of key brands and distributes its products through multiple channels, including retail and department stores, direct-to-consumer online platforms, and its own brand and factory stores.
Under Armour Inc. (NYSE:UA) experienced a better-than-expected second quarter of 2025, leading to an upward revision of its fiscal 2025 outlook. The company’s earnings per share of 30 cents and revenue of $1.4 billion beat estimates. Under Armour Inc. (NYSE:UA) has made progress in streamlining its operations. By cutting back on promotional discounts and wholesale markdowns, the company has achieved a stronger inventory position and improved gross margins in Q2 2025. Full-price sales now account for 50% of e-commerce revenue, a significant increase from 30% the previous year, reflecting improved brand strength and more effective inventory control.
Under Armour Inc. (NYSE:UA) is now aiming for EBIT margins of over 10%. Less reliance on promotions, more direct-to-consumer sales, and smarter market segmentation are expected to help increase profits. Stronger-than-expected results and a clear growth strategy have boosted analysts’ confidence in the company’s future.
Under Armour Inc. (NYSE:UA) is emerging as a potential turnaround story, challenging the investor focus on Nike and Lululemon. After its Q2 2025 earnings, the company has outlined a clear plan to refresh its brand, products, and financial performance. Under Armour’s strategy is focused on a product shift set for Fall/Winter 2025. Kevin Plank, the company’s founder, has highlighted the importance of showing “proofs of life” early, with the recent launch of a 9-month speed-to-market process, in addition to the usual 18-month product development timeline.
6. On Holding AG (NYSE:ONON)
Number of Hedge Fund Holders: 35
On Holding AG (NYSE:ONON) is a Swiss company that develops and distributes footwear, apparel, and accessories for athletes and sports enthusiasts. Founded in 2010, the company sells its products through online stores, physical stores, and distributors. On Holding AG (NYSE:ONON) ranks highly among our list of the best sporting goods stocks to invest in now.
On Holding AG (NYSE:ONON) recently reported impressive third-quarter results, with net sales rising 33% year-over-year to CHF 636 million. This strong performance was driven by high demand across the direct-to-consumer segment and growing brand awareness globally. Moreover, the company’s gross profit margin reached 60.6% in the same quarter, showing a disciplined approach toward cost management. As a result, On Holding AG (NYSE:ONON) has increased its full-year 2024 net sales growth forecast from 30% to 32%, projecting net sales of at least CHF 2.29 billion.
The company has taken a series of strategic initiatives, including the launch of new products such as Could Surfer 2 and Cloud 6, the expansion of its store network by opening 20-25 stores, and continued investment in marketing campaigns. These recent developments allow the company to sustain its strong brand awareness and sales growth trajectory.
Here’s what Artisan Partners said about On Holding AG (NYSE:ONON) in its Q1 2024 investor letter:
“We initiated new GardenSM positions in On Holding AG (NYSE:ONON) during the quarter. On is an emerging global athletic sports brand focusing on performance footwear. Performance running footwear is one of the most challenging categories to break into, requiring a high degree of technical knowledge, significant investment spending and marketing prowess, each of which On has acheived over the years. The company’s foundation in performance footwear provides a high barrier to entry and a strong and credible foundation for the brand to continue growing. We believe On will generate attractive growth as it scales across product categories, channels and geographies within the $300 billion global sportswear market.”
5. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 35
DICK’S Sporting Goods, Inc. (NYSE:DKS) is a prominent American retailer specializing in sporting goods as well as camping and hiking gear and picnic supplies. The company has over 800 stores along with a strong online platform. With the availability of its products across different channels, the company holds the position of the leading omnichannel sporting goods retailer in the United States.
According to DICK’S Sporting Goods, Inc.’s (NYSE:DKS) Q3 2024 results, its net sales were up 0.5% to $3.06 billion and its gross margin expanded by 67 basis points to 35.8%. Comparable sales increased 4.2%, driven by growth in average ticket and transactions. The company also raised its full-year 2024 guidance, expecting comparable sales growth of 3.6% to 4.2% and earnings per share between $13.65 and $13.95, showing confidence in its business plans.
DICK’S Sporting Goods, Inc. (NYSE:DKS) is focused on international growth, with plans to open new stores and expand its online presence. Its efforts include in-store initiatives like the Field House concept and digital tools such as the GameChanger app to improve the customer experience. These strategies position DICK’S Sporting Goods, Inc. (NYSE: DKS) to stand out from its competitors.
The company is reshaping sports retail by building strong brand partnerships and communities. Their “Health of Sport” concept is designed to meet the needs of all athletes, covering both performance and lifestyle. In Q3, DICK’S Sporting Goods, Inc. (NYSE:DKS) opened three House of Sports locations, bringing the total to nineteen ahead of the holiday season. In 2025, the company plans to open around six Health and Support locations and is on track to have 75 to 100 locations open by 2027.
In 2025, the company plans to open around twenty Fieldhouse locations. The Texas market is seen as a key growth opportunity, and DICK’S Sporting Goods, Inc. (NYSE:DKS) is investing in new health support locations, marketing, and infrastructure to improve the omnichannel experience for athletes and take advantage of this potential. This quarter, they started construction on a new distribution center in Fort Worth, Texas, which is set to open in early 2026.
4. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 35
Peloton Interactive, Inc. (NASDAQ:PTON) is a leading provider of connected fitness solutions, offering a range of products. The company sells its products through various channels, including e-commerce, direct sales, retail showrooms, and third-party retailers. Founded in 2012, Peloton Interactive, Inc. (NASDAQ:PTON) is headquartered in New York.
Peloton Interactive, Inc. (NASDAQ:PTON) announced its first-quarter fiscal 2025 results, exceeding expectations for subscribers and revenue. The company is focused on improving unit economics and profitability while continuing to invest in innovation. Peloton Interactive, Inc. (NASDAQ:PTON) is on track to deliver over $200 million in annualized cost savings by the end of fiscal year 2025.
The company is also investing in content, product development, and marketing to drive long-term growth. Peloton Interactive, Inc. (NASDAQ:PTON) raised its full-year fiscal 2025 adjusted EBITDA guidance to $240 million to $290 million and its free cash flow target to at least $125 million.
To address sales growth challenges, Peloton Interactive, Inc. (NASDAQ:PTON) is expanding its retail presence through partnerships with major retailers like Costco and is seeing promising results in international markets, especially in Germany’s retail channels. Moreover, Peter Stern, the newly appointed CEO, is expected to take over in January 2025. He is a seasoned leader with a strong track record of driving innovation and growth.
Peloton Interactive, Inc. (NASDAQ:PTON) strategic cost-cutting initiatives and partnerships to drive growth make the stock a compelling investment option. Here’s what Patient Capital Management said about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q1 2025 investor letter:
“Peloton Interactive, Inc. (NASDAQ:PTON) declined in the first quarter, hitting its lowest per share valuation in late March since becoming a public company. The company has taken drastic action to right-size the extremely bloated cost structure, expand sales channels (Amazon, Dick’s Sporting Goods), and test other ways to reinvigorate growth. The company is hyper focused on reaching positive free cash flow generation, but the path was pushed out. We continue to believe the value of the business lives in the high-margin, sticky subscription piece of the business. We think at current valuation, the company will either successfully turn things around or be a take-out target.”
3. Skechers U.S.A., Inc. (NYSE:SKX)
Number of Hedge Fund Holders: 42
Established in 1992, Skechers U.S.A., Inc. (NYSE:SKX) is a renowned footwear and apparel company headquartered in the United States. The company is considered among the best sporting goods stocks to invest in by over 40 hedge funds.
Skechers U.S.A., Inc. (NYSE:SKX) reported a strong third quarter of 2024, with record sales reaching $2.35 billion, a 16% year-over-year increase. Earnings per diluted share also increased 35% to $1.26. The company’s growth was driven by a 21% increase in wholesale operations and a 9.6% rise in direct-to-consumer sales.
Skechers U.S.A., Inc. (NYSE:SKX) also experienced growth in international markets, particularly in EMEA, which now accounts for 61% of total revenue. The company now plans to continue its expansion, opening 68 new stores in Q3 and targeting 55 to 60 more in Q4. With a strong liquidity position of $1.6 billion in cash and $2.42 billion in total liquidity, Skechers U.S.A., Inc. (NYSE:SKX) is well-positioned to capitalize on future growth opportunities.
In India, the company experienced a strong rebound during the quarter, achieving 24% growth. This year, Skechers U.S.A., Inc. (NYSE:SKX) became the kit sponsor for the All India Pickleball Association and signed several players. For the launch of cricket footwear, they also became the kit sponsor for the Mumbai Indians, signing numerous players from the Indian national team. In September, Skechers U.S.A., Inc. (NYSE:SKX) also announced a partnership with NBA India to sponsor the youth basketball team. The demand for products in India is strong and the company plans to keep investing in this important market.
As of Q3 2024, 42 hedge funds reported owning a stake in Skechers U.S.A., Inc. (NYSE:SKX). Point72 Asset Management was the leading hedge fund investor in the company, with a stake worth over $157 million.
2. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 45
Lululemon Athletica Inc. (NASDAQ:LULU) is involved in the design, distribution, and sale of athletic apparel, footwear, and fitness-inspired accessories. It operates through company-owned stores and direct-to-consumer channels.
Analysts have a bullish outlook on the company since the leadership expects international sales to reach half of the company’s long-term sales mix. This is significantly higher than the 25% projected for fiscal year 2024. Lululemon Athletica Inc. (NASDAQ:LULU) has shown strong financial performance recently which aligns with the company’s growth trajectory and analysts’ bullish outlook. The company’s third-quarter revenue grew 8% year-over-year to $2.4 billion, while EPS recorded an increase of 13% to $2.87.
The management has also approved a $1 billion increase to its share repurchase program, reflecting confidence in its future prospects. The company continues to see strong growth potential in the U.S. Guest retention remains high, and there is an opportunity to increase revenue per guest by offering more new products. The membership program is also growing, now with 24 million members. The benefits, including early access, partner perks, and members-only events, are well-received. Moreover, unaided brand awareness in the US is still low at 36%, presenting an opportunity for growth as the company opens stores and launches new brand campaigns.
Here’s what Jim Cramer recently said about Lululemon Athletica Inc. (NASDAQ:LULU):
“Darden joins three other premium value businesses, Williams-Sonoma, Ralph Lauren, and Lululemon. All had great numbers, also goods that cost a lot of money yet in each case, consumers recognize that their product is worth every penny. That’s why I call it premium value or value at a price. If you’re willing to pay up for quality, but you’re still somewhat cost-conscious, they got you covered.”
At the end of Q3 2024, Lululemon Athletica Inc. (NASDAQ:LULU) was held by 45 hedge funds. Alyeska Investment Group increased its stake in the company by over 2500% during the third quarter.
1. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 75
NIKE, Inc. (NYSE:NKE) deals in the development and sale of athletic footwear, apparel, equipment, accessories, and related products. The company operates globally in the sports performance, casual wear, and lifestyle markets. It is known for its iconic brand and innovation-driven approach.
Recently, the company made changes to its management, the most notable of which was the rehiring of experienced professionals such as Elliott Hill and Tom Peddle as CEO and VP of Marketplace Partners respectively. This shows NIKE, Inc. (NYSE:NKE)’s seriousness in its turnaround efforts. In November, the company saw strong growth in both digital and physical traffic, especially during the quarter’s major consumer events. In North America, Black Friday week was the busiest demand week ever on NIKE Digital, with sales increasing by double digits. In Greater China, the company’s performance during 11/11 exceeded expectations.
NIKE, Inc. (NYSE:NKE) is also speeding up its product design and launch process to address slow innovation, which has affected growth in recent quarters. New products like the Pegasus 41 launched in July and the Air Max Dn in March 2024 are early signs of this effort. The company is aiming for a significant reduction in weeks of supply for its classic footwear franchises during the next few seasons. This will result in lower summer order books compared to the previous year. To support key product launches and upcoming sports events, brand marketing activity is being increased. Investment in sports marketing is also growing, supported by long-term partnership renewals.
Although the company faces some short-term challenges, analysts are cautiously optimistic about its future. With its strong brand and market position, Nike is expected to see gradual improvement, with 2025 being a year of transition and growth likely picking up in 2026.
Overall, NKE ranks first among the top 10 best sporting goods stocks to invest in now. While we acknowledge the potential of the best sporting goods stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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