In this article we will take a look at the 5 best sporting goods stocks to buy. For a detailed analysis of the sporting goods sector, go directly to the 10 Best Sporting Goods Stocks to Buy.
5. Callaway Golf Company (NYSE: ELY)
Number of Hedge Fund Holders: 40
Callaway Golf Company (NYSE: ELY) is a California-based firm that makes and sells golf equipment. It was founded in 1982 and is placed fifth on our list of 10 best sporting goods stocks to buy. The company markets drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs. It also sells golf balls, apparel, and footwear. It owns brands such as Callaway, Odyssey, and TravisMathew. It has operations in more than 100 countries and has recently launched websites for online sales.
On April 22, investment advisory Jefferies named Callaway Golf Company (NYSE: ELY) as the top pick for the golf industry amid a return to normal business after the pandemic. Jefferies based the positive outlook on Callaway’s purchase of Topgolf in March this year.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 3.6 million shares worth more than $86 million.
4. Hibbett Sports, Inc. (NASDAQ: HIBB)
Number of Hedge Fund Holders: 20
Hibbett Sports, Inc. (NASDAQ: HIBB) is an Alabama-based retailer of sports goods. It was founded in 1945 and is placed fourth on our list of 10 best sporting goods stocks to buy. The firm operates more than 1,000 retail stores in more than 30 US states. It has a market cap of $1.3 billion and posted more than $1.4 billion in annual revenue in 2020. Some of the products it markets include athletic footwear, athletic and fashion apparel, team sports equipment, and related accessories.
On March 5, Hibbett Sports, Inc. (NASDAQ: HIBB) posted quarterly results detailing that comparable sales had increased to 22% in the fourth quarter of 2020. Most of these were attributed to the explosion in e-commerce sales that were 45% above previous levels during the pandemic.
At the end of the fourth quarter of 2020, 20 hedge funds in the database of Insider Monkey held stakes worth $150 million in the firm, down from 21 in the preceding quarter worth $181 million.
Roubaix Capital, in its Q4 2020 investor letter, said that Hibbett Sports, Inc. (NASDAQ: HIBB) was one of the top contributors for their short portfolio in the fourth quarter of 2020. Here is what Roubaix Capital has to say about Hibbett Sports, Inc. in its letter:
“The second best short in the quarter was Hibbett Sports (HIBB), a sporting goods retailer. Many businesses were able to benefit from the spending shifts caused by the pandemic. For example, online retailers, companies that sell into the home improvement markets and grocery stores all saw varying degrees of improvement. We did not see HIBB as a clear beneficiary as they have historically underinvested in their online business. However, they managed to post very strong results during their third quarter from leisure spending trends and the stock reacted favorably. We shorted the strength of this rally and continue hold our position as we do not see HIBB as a longer-term winner in its markets.”
3. Daktronics, Inc. (NASDAQ: DAKT)
Number of Hedge Fund Holders: 15
Daktronics, Inc. (NASDAQ: DAKT) is a South Dakota-based firm that makes and sells scoreboards, billboards, and sound systems for sports stadiums. It is ranked third on our list of 10 best sporting goods stocks to buy and was founded in 1968. Some of the services and products the firm offers include video display systems, architectural lighting and display products, as well as indoor and outdoor scoreboards for many different sports, among others. It also sells sports-related statistics software and swimming timers and start systems.
Daktronics, Inc. (NASDAQ: DAKT) Q3 GAAP EPS beat the Street’s forecasts by $0.06. Revenue in the quarter declined by 26% to $94.1 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in the firm with 1.3 million shares worth more than $6.3 million.
2. Big 5 Sporting Goods Corporation (NASDAQ: BGFV)
Number of Hedge Fund Holders: 17
Big 5 Sporting Goods Corporation (NASDAQ: BGFV) is a California-based sports retailer that was founded in 1955. It is placed second on our list of 10 best sporting goods stocks to buy. It owns and runs more than 400 sports retail stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. The company makes and sells athletic shoes, apparel, and accessories for hunting, fishing, tennis, golf, and other sports and recreational activities.
On March 2, Big 5 Sporting Goods Corporation (NASDAQ: BGFV) raised its dividend by 50% to $0.15 per share after a strong start to the year. In January, the firm had posted quarterly results and comprehensively beat market estimates for sales and merchandise margins.
At the end of the fourth quarter of 2020, 17 hedge funds in the database of Insider Monkey held stakes worth $15 million in the firm, up from 9 in the preceding quarter worth $18 million.
1. NIKE, Inc. (NYSE: NKE)
Number of Hedge Fund Holders: 82
NIKE, Inc. (NYSE: NKE) is a Eugene-based company that makes and sells sportswear and sports equipment worldwide. It is placed first on our list of 10 best sporting goods stocks to buy and was founded in 1964. It has a market cap of more than $210 billion and posted an annual revenue of $37 billion in 2020. It markets equipment and accessories for many sports, including football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, and wrestling, among others.
NIKE, Inc. (NYSE: NKE) was named among the top picks of investment advisory UBS on April 7 as the economy reopened and the retail environment normalized. UBS said that Nike was one of the firms with strong and underappreciated post-pandemic growth prospects.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in the firm with 7.7 million shares worth more than $1 billion.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
