I figured since golf is one of the few sports you are actually allowed to play right now I would get into some golf related stocks that you could invest in. Seeing as how I have already been golfing twice as much as last year a whopping 2 times. I figured that basically makes me a pro on golf related subjects now, because only a pro can get 106 on 18 holes (haha).
There are several golf companies that are fairly obvious that you could buy, such as Nike (NKE,NYSE) and Callaway Golf (ELY,NYSE). I also found several surprising companies that I would not have thought would be involved in golf, such as Eaton Corp (ETN) and Ingersoll Rand (IR). I will not get into Ingersoll in this article as they currently have negative earnings per share and are only 20% off of their 52 week high at the moment. Another company I won’t get into is Drive Shack because they also have negative earnings per share. Drive shack operates driving ranges as well as owning American Golf, which is one of the largest golf course operating companies in the world.
Nike (NKE,NYSE) obviously needs no introduction; they sell all kinds of sportswear, equipment and apparel. Professional golfers that have contracts with Nike include Tiger Woods, Rory Mallory, and Jason Day among others (there are 29 in total). Nike’s market cap is 153 Billion, 52 week range is $60-$105.62, Current share price is $96.28 which is fairly close to the 52 week high, P/E is 60.96 (on the high side), EPS is $1.579, Dividend is $0.98 per share (yearly total), and the current yield is 1.02%. I probably wouldn’t look at Nike currently due to the high P/E ratio and relatively low dividend yield.
Callaway Golf (ELY,NYSE) is another company that doesn’t need an introduction. There are not very many golf shops you can walk into without seeing Callaway Golf clubs and apparel. Phil Mickelson is the most famous golfer associated with Callaway. World long drive champions Kyle Berkshire and Chloe Garner are also associated with Callaway Golf. Callaway’s market cap is 1.64 Billion, 52 week range is $4.75-$22.33, current share price is $17.65, P/E ratio is 28.26 which is a bit on the higher side, EPS is $0.6158, the dividend is $0.04 and the yield is 0.23%. The P/E ratio is a bit too high right now for my liking, but the low dividend with lots of room for growth and a dollar or 2 drop in share price would have me seriously looking at this stock as a potential buy.
Dicks Sporting Goods (DKS,NYSE) is not a golf manufacturer but they are a retailer of sports related equipment and apparel. Their market cap is 3.67 Billion, 52 week range is $13.46-$49.80, current price is $41.00, P/E ratio is 40.04 which is pretty high at the moment, EPS is $1.024, they do not pay a dividend. The high P/E ratio and the lack of dividend would probably stop me from looking much further at this stock.
Eaton Corp (ETN,NYSE) is one of the companies that have golf related products that I found very surprising. They are a power management company that sells electrical products, electrical systems, hydraulics, aerospace, and vehicle systems. On top of these segments they also sell Golf Pride grips which is one of the more sought after custom grips used on golf clubs today. Eaton’s market cap is 37.36 Billion, 52 week range is $56.42-$105.78, the current share price is $94.57, P/E ratio is 18.57, EPS is $5.09, Dividend is $2.92 and the current yield is 3.09%. The decent dividend yield and the P/E ratio getting close to the 15 range would have me taking a decent look at this stock. The only downside to them is that their hydraulic and electrical system sales will be negatively affected by the current low oil prices.
Acushnet Holdings (GOLF,NYSE) is a company anyone who is not an avid golfer has probably never heard of. Pretty much everyone will know the brands that they own though. These include Titleist, FootJoy, Vokey Design Wedges, Scotty Cameron (putters by Titleist), Pinnacle, and KJUS, which is a skiwear brand. Acushnet has a market cap of 2.64 Billion, 52 week range is $20.65-$37.12, Current share price is $36.11, P/E ratio is 28.73, EPS is $1.257, Dividend is $0.62, and the yield is 1.72%. I like their dividend yield but their P/E ratio is on the higher side at the moment and they are close to their 52-week high. I would probably wait for a share price drop before looking into buying this stock.
Out of these companies the main one I would personally be looking at is Eaton corp due to their high dividend yield and lower P/E ratio. They are more of an industrial company than a golf company but still have decent potential for growth. I would also keep an eye on Acushnet holdings and Callaway golf. Both of these companies would potentially be a good buying opportunity if their share prices were to drop a little bit. This would have the dual impact of raising their dividend yield and lowering their P/E ratio.