Is Callaway Golf Stock a Buy?
Congratulations to investors who stuck with Callaway Golf (NYSE: ELY). Despite the stock tumbling in February and March of last year when the COVID-19 contagion began spreading all over the world, this golf-centric stock has rebounded nicely. Callaway shares are up more than 500% from last March's low and trading at just a couple bucks below record highs hit last month.
The last part of that rally is paired with surprisingly strong growth in amateur golfing. Although the pandemic shuttered courses early last year, the National Golf Foundation says the number of rounds played in the United States in 2020 was actually up 14% compared to 2019's levels. The last few months of the year saw particularly strong growth in total rounds played, driven by enthusiasts desperate for (reasonably) safe diversions. This improvement builds on 2019's reversal of a 2018 headwind. More growth is expected for the business going forward, too.
It's all an encouraging backdrop for prospective buyers of Callaway stock.
Source Fool.com
