Acushnet Holdings Corp. (NYSE:GOLF) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. Cramer called it a “steadier, more consistent player,” as he stated:
Now, in recent years, there have really only been two golf pure plays worth considering: Acushnet Holdings, the parent company of Titleist and FootJoy, among other golf equipment brands which has the extremely apropos ticker, GOLF. And then there’s Callaway Golf, which has gone through some significant changes over the past few years as it first merged with and then broke up with Topgolf, the driving range entertainment venue.
When we last looked at the golf stocks a year ago, I steered you heavily toward Acushnet, which has been the steadier, more consistent player. I said, you are getting a great buying opportunity thanks to the post-Liberation Day tariff meltdown. And while I liked Acushnet, I warned you to steer clear of Callaway until they finally broke up with Topgolf. Well, one year later, I’m happy to report that Acushnet worked out great. It’s up 59%, that’s more than double the S&P during that same period. This one’s been a reliable long-term winner…
All told, as steady as she goes for Acushnet, the one flaw here is that after this run, the stock’s actually more expensive than it’s been in a long time. It’s trading at 26.5 times this year’s earnings estimate. That’s not cheap. This isn’t like last year when the tariff-driven sell-off was giving you a great entry point. Acushnet barely sold off on the war with Iran, and now it’s erased those losses thanks to the ceasefire. I think the stock deserves a premium because I believe they can make the numbers. But I don’t blame anyone who’s hesitant to pay up for this one, especially after it jumped 4% today. Maybe you want to wait for the next market wide pullback. So, I’m happy with Acushnet.
Pixabay/Public Domain
Acushnet Holdings Corp. (NYSE:GOLF) manufactures premium golf equipment, apparel, and luxury leather goods under brands like Titleist and FootJoy.
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