8 Best Golf Stocks To Invest In According to Hedge Funds

4. Acushnet Holdings Corp. (NYSE:GOLF)

Average Upside Potential: 14.05%

Number of Hedge Fund Holders: 21

Acushnet Holdings Corp. (NYSE:GOLF) operates a series of brands that manufacture golf equipment, clothing, and accessories. Brands include Titleist and FootJoy. Titleist is renowned for its high-performance golf balls and clubs, trusted by many professional golfers. FootJoy is a major player in the golf footwear and apparel market, offering a range of products for golfers of all levels. The company is committed to innovation and excellence, continuously striving to provide golfers with the best equipment and apparel to enhance their game.

The recent capital investments are already paying off, with increased urethane capacity and improved efficiency in the ball plants and custom imprint facilities. Titleist Golf Clubs had Japan and EMEA as the key growth markets, while the US market experienced a 7% increase, driven by golf balls, FJ Apparel, and other categories.

The company’s second-quarter net sales reached $683.87 million, a modest 0.80% year-over-year increase. This uptick was primarily attributed to the strong performance of Titleist Golf Balls. Net sales for the first half climbed 2% to $1.39 billion, with Titleist Golf Balls and Golf Clubs being key drivers, growing 7% and 5%, respectively. Notably, Titleist Golf Balls achieved double-digit growth in the US and Korea, even in a competitive market. To meet this robust demand, 3 Golf Ball production facilities are currently operating at full capacity.

It’s optimistic about the future of its golf ball and club businesses. Despite short-term challenges in certain regions due to excess inventory, Acushnet Holdings Corp.’s (NYSE:GOLF) strong brands and product pipeline position it for long-term growth. Key product launches and strategic investments will drive future success and enhance shareholder value.

Diamond Hill Long-Short Fund made the following comment about Acushnet Holdings Corp. (NYSE:GOLF) in its Q4 2022 investor letter:

“New positions initiated in Q4 included shorts International Business Machines (IBM), Acushnet Holdings Corp. (NYSE:GOLF) and elf Beauty (ELF). Acushnet (GOLF) is a leading manufacturer of golf equipment, accessories and apparel. The company owns several top brands in golf, including Titleist and FootJoy. Golf experienced heightened demand as consumers looked for socially distanced leisure activities over the last several years. We expect some of this enthusiasm — especially from newer golfers — to wane over the next couple years and for the average number of rounds per golfer to normalize from a high in 2021. We also believe some demand for equipment and apparel was likely pulled forward.”