Acushnet Holdings (NYSE:GOLF) is a Zacks Rank #1 (Strong Buy) that sports a C for Value and B for Growth. This leisure name is best known as the company that owns Titleist and Footjoy. The company just reported earnings last month and hasn’t been hit in the market selloff, so let’s take a deeper look at this stock in this Bull of the Day article.
Description
Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products. The company's operating segment consists of Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear and FootJoy Golf Wear. Acushnet Holdings Corp. is headquartered in Fairhaven, Massachusetts.es.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For GOLF, I see a good history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 151%, so the beats are pretty big.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For GOLF, I see annual estimates moving higher.
Over the last 90 days, I see a few increases.
This quarter has declined from a loss of $0.09 to a loss of $0.29.
Next quarter has a small increase from $0.85 to $0.86.
The full year 2021 has moved from $2.25 to $2.41.
Next year has seen an increase from $2.35 to $2.51.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The forward earnings multiple for GOLF checks in at 23x, which is a little high given topline growth last quarter came in at 8%. The price to book is 3.5x, and that is just a little over where value investors would get excited as they like a book multiple of 3x or lower. The price to sales multiple checks in at 1.9x, which leaves a lot of room for growth.
Chart
Acushnet Price, Consensus and EPS Surprise
Acushnet price-consensus-eps-surprise-chart | Acushnet Quote
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