On Thursday, CNBC’s Jim Kramer said investors should consider buying shares of Aquinet and T-up for long-term Calloway.
“Pure golf stocks have been destroyed here, and if you want to be opportunistic, especially [Masters Tournament]I prefer Acushnet to Callaway, at least for the rest of 2022, “said the host,” Mad Money. “
Many people turned to golf as a way to stay active during the epidemic but kept their distance socially, leading golf brands to see sales growth in 2020.
Since then, “Callaway has dropped more than 40% from its height last summer. Acusnet has been down 30% from its peak since last November,” Kramer said, although he maintained that he did not view stocks as an epidemic.
Callaway stock fell 0.98% on Thursday to $ 22.19, its 52-week high of. 37.75. Shares of Acusnet, which includes FootJoy and TitleList, fell 0.39% to $ 40.74 on Thursday, hitting a 52-week high of $ 57.87.
Kramer added because AcuSnet was able to deliver Despite tackling supply chain problems, “last year saw tremendous sales and earnings growth,” he believes the stock is currently undervalued. “AcuSnet is selling at approximately 15 times this year’s earnings. I like it. It has made it so cheap at any time in the last two years.
For Callaway, Kramer said that while stocks were low, he was reluctant to advise investors to buy stocks in the current market due to the merger with sports entertainment company TopGolf in 2021.
“Callaway has become less of a real business and more of a concept. Those concept stocks went out of style last November,” Kramer said. “And it’s hard to say that it’s cheap even after such a fall,” he added.
“In the long run, I think Callaway has a pretty good growth story. That said, it’s probably not suitable for this market,” he said.
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