Is It Too Late To Consider Buying Acushnet Holdings Corp. (NYSE:GOLF)?

While Acushnet Holdings Corp. (NYSE:GOLF) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Acushnet Holdings’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Acushnet Holdings

What Is Acushnet Holdings Worth?

According to my valuation model, Acushnet Holdings seems to be fairly priced at around 12% below my intrinsic value, which means if you buy Acushnet Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $62.47, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Acushnet Holdings has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Acushnet Holdings?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 negative earnings growth of -7.4%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? GOLF seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on GOLF for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on GOLF should the price fluctuate below its true value.

So while earnings quality is important, it's equally important to consider the risks facing Acushnet Holdings at this point in time. Case in point: We've spotted 3 warning signs for Acushnet Holdings you should be mindful of and 1 of them is a bit concerning.

If you are no longer interested in Acushnet Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.