We recently published a list of 10 Best Golf Stocks to Buy According to Analysts. In this article, we are going to take a look at where Topgolf Callaway Brands Corp. (NYSE:MODG) stands against other best golf stocks to buy according to analysts.
Golf stocks are publicly traded firms that are part of the golf industry. These companies include businesses that manufacture golf equipment, operate golf courses, and provide associated services, giving investors a chance to engage in the golf market.
The golf industry continues to evolve with women, social play, lessons, and online bookings driving key developments. According to a report by NBC Sports Next, female engagement has grown by 15%, with 800,000 more women golfers joining between 2020 and 2022, compared to a 2% rise among male golfers. Women now account for one-third of junior players and 49% of surveyed golfers. Golf remains a strongly social activity, with 49% of surveyed golfers primarily playing with friends. Business-related golf is also growing, notably among GolfNow users. While 36% of golfers took a lesson in the previous year, the number rose to 67% among GolfNow customers, with many preferring a combination of on-course and facility-based training. Moreover, younger golfers are frequently booking online, with 43% of those aged 18 to 34 reserving at least one round by 2023. Speed and convenience are essential, with 55% citing online booking as the quickest option. These developments point out expansion prospects for courses that cater to women, social golfers, and digitally aware players.
According to the National Golf Foundation’s research, the golf business in the United States is still expanding rapidly, with 45 million Americans (aged 6 and up) playing golf in 2023, including 26.6 million on-course and 18.4 million in off-course venues like simulators and Topgolf. The business has seen nearly 2 million new golfers each year for the past ten years, with 3.4 million first-time players projected in 2023 alone. The largest consumer age group is still young adults (18-34 years old), with 6.3 million participants on the course and 5.8 million off. Since 2019, juniors (3.5 million) have shot up by 40%, with girls accounting for 37%. Female involvement has climbed to 7 million, making up 26% of on-course golfers. In 2023, rounds played reached a record high of 531 million, beating the pre-pandemic average by more than 10%. The US offers 16,000 courses at 14,000 facilities, with 75% open to the public. Despite a 12% drop in course supply since 2006, demand remains high, with 22.4 million people expressing a desire to play.
Finally, TGL, the golf league that began playing matches in January 2025, is combining digital and physical components to create an entirely new hybrid golf experience. Teams of golfers compete in a specially created venue across a set of custom-made holes. They begin by hitting a large-screen simulator of real terrain, then shift to a transformable turntable as the green. Broadcasting innovations aimed at bringing golfers’ experiences closer to home viewers were deemed crucial from the start. The 2025 PGA Merchandise Show in Orlando showcased the golf industry’s strong momentum.
Marc Simon, Vice President of PGA Golf Exhibitions, stated:
“The show is a reflection of the industry, and golf is thriving right now,” “With the surging popularity of golf, we saw the largest number of exhibitors and largest occupied space since 2009, which is encouraging to see.”
The exhibition included over 1,000 exhibitors spread across 1.1 million square feet, showcasing golf’s continuous development in the $102 billion industry. More than 1,200 VIP buyers from 770 golf courses and mass merchandisers attended, totaling $810 million in purchasing power and roughly $2 billion in retail sales potential. The event has progressed beyond typical golf equipment and gear to include fitness, health, and wellness areas, as well as racquet sports and club facilities. The Clubhouse exhibition space was doubled in size, mirroring the trend in golf facilities toward broader member experiences.
Technology was a major focus, with AI-powered golf simulators, effective ball-flight data, and next-generation golf carts catering to growing personal cart ownership. Golf’s trends are shifting, with a record 200 influencers in attendance and robust clothing growth fueled by Gen Z consumers. The PGA Show’s reinvention is in line with industry trends, stressing experiential marketing and innovation. Looking ahead, organizers intend to continue responding to changing company needs in order to ensure long-term industry success.
A group of happy golfers basking in the warm sun on a golf course.
Methodology
For this list, we compiled an initial list of 12 golf stocks, which included companies that are involved in the golf industry. Then, we selected the 10 stocks that had the highest upside potential as of April 9, 2025. We have only included stocks in our list with an upside potential of 10% or higher. The stocks are ranked in ascending order of the upside potential.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Topgolf Callaway Brands Corp. (NYSE:MODG)
Analysts’ Upside Potential as of April 9: 118.55%
Topgolf Callaway Brands Corp. (NYSE:MODG) is a golf and active lifestyle company that offers golf entertainment experiences. It also creates, manufactures, and markets active lifestyle, golf clothing, and accessories. The company’s brands include Topgolf, Callaway Golf, Odyssey, TravisMathew, Jack Wolfskin, OGIO, Toptracer, and the World Golf Tour. Its segments include Topgolf, Golf Equipment, and Active Lifestyle.
The management intends to spin out Topgolf Callaway Brands Corp. (NYSE:MODG), allowing each firm to focus on its assets and possibly improve shareholder value. In fiscal Q4 2024, the business generated $337 million in EBITDA and over 34% venue-level EBITDA margins, despite pressure on the top line. It also generated more than $100 million in free cash flow.
Topgolf Callaway Brands Corp. (NYSE:MODG) reported a total company free cash flow of $203 million, exceeding expectations and substantially strengthening its financial position. Management expressed confidence in the company’s product-side operations in 2025, as well as the health of its Golf Equipment category and product selection.
Overall, MODG ranks 1st on our list of the 10 best golf stocks to buy according to analysts. While we acknowledge the potential of golf companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MODG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
