At US$23.21, Is It Time To Put Acushnet Holdings Corp. (NYSE:GOLF) On Your Watch List?
Acushnet Holdings Corp. (NYSE:GOLF), which is in the leisure business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$32.98 at one point, and dropping to the lows of US$23.21. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Acushnet Holdings's current trading price of US$23.21 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Acushnet Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Acushnet Holdings
Is Acushnet Holdings still cheap?
Great news for investors – Acushnet Holdings is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $31.20, but it is currently trading at US$23.21 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Acushnet Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Acushnet Holdings?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Acushnet Holdings, it is expected to deliver a relatively unexciting earnings growth of 8.0%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since GOLF is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on GOLF for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GOLF. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Acushnet Holdings. You can find everything you need to know about Acushnet Holdings in the latest infographic research report. If you are no longer interested in Acushnet Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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