Callaway vs. Acushnet: Which Golf Equipment Stock Has the Edge Now?

Callaway Golf Company CALY and Acushnet Holdings Corp. GOLF are two prominent players in the global golf equipment market, benefiting from sustained participation growth, rising engagement across demographics and resilient demand for premium products. While Callaway is undergoing a strategic transformation to sharpen its focus on higher-margin core businesses, Acushnet continues to build on its premium brand strength and consistent execution across equipment and wearables.

As the golf industry navigates tariff pressures and evolving consumer dynamics, both companies are positioning themselves to capture the next phase of growth through innovation, product differentiation and operational discipline. But which stock currently offers the more compelling risk-reward profile? Let’s break it down.

The Case for Callaway Stock

Callaway is in the midst of a major transformation, returning to its roots as a focused golf equipment and apparel company after divesting non-core assets. The sale of Jack Wolfskin and a majority stake in Topgolf have streamlined operations and materially strengthened the balance sheet, placing the company in a net cash position.

With the portfolio reset largely complete, management is now prioritizing profitability over pure top-line growth. The company is pulling back from lower-margin categories and channels, rationalizing SKUs and extending product life cycles to improve efficiency and margin durability. While these moves are expected to pressure revenues in the near term — particularly in the second half of 2026 — they are aimed at driving stronger long-term free cash flow and operating leverage.

Innovation remains central to Callaway’s strategy. New product launches, including the Quantum driver with Tri-Force Face technology and updated Chrome Tour golf balls, are designed to strengthen its position in premium segments. Management indicated early feedback has been positive, though still preliminary and subject to validation during the peak selling season.

Operationally, the company is making progress on margins through mix optimization and targeted investments, such as expanding its fitting programs. Equipment margins have shown improvement on an underlying basis, excluding tariff impacts, indicating that internal initiatives are gaining traction.

However, several headwinds remain. Tariff costs are expected to increase further in 2026, weighing on profitability. At the same time, softer consumer confidence and management’s deliberate shift away from lower-margin volume are likely to keep near-term revenue growth muted.

The Case for Acushnet Stock

Acushnet continues to execute from a position of strength, supported by its premium brands like Titleist and FootJoy. The company delivered solid growth in 2025, driven by strong demand for golf equipment — particularly balls and clubs — along with favorable pricing and product mix.

Its strategy is firmly rooted in premiumization and innovation. Investments in product development, precision manufacturing and custom fitting capabilities are enabling both volume growth and pricing power. Capacity expansion initiatives, especially in golf ball production and club assembly, further enhance its ability to meet demand and support long-term growth.

Acushnet is also entering 2026 with a robust product cycle. Multiple launches across golf balls, wedges, putters and an accelerated driver rollout are expected to support steady revenue growth, with EBITDA margins projected to remain stable despite ongoing tariff pressures.

Operational discipline is another key differentiator. The company continues to invest in its global fitting network, digital infrastructure and supply chain capabilities, while maintaining a balanced capital allocation strategy that includes dividends and share repurchases.

That said, challenges persist. Tariffs remain a meaningful cost headwind, and certain segments — particularly apparel and footwear — have shown softness in international markets such as Japan and Korea. Additionally, ongoing investments in ERP systems and capacity expansion are expected to keep expenses elevated in the near term.

How Does the Consensus Estimate Compare for CALY & GOLF?

The Zacks Consensus Estimate for Callaway’s 2026 sales suggests a year-over-year decline of 42.3%, while earnings per share (EPS) indicate a rise of 128.6%. In the past 60 days, earnings estimates for 2026 have jumped 152.6%.

CALY Earnings Estimate Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Acushnet’s 2026 sales and EPS suggests year-over-year increases of 3.9% and 10.6%, respectively. In the past 60 days, earnings estimates for 2026 have inched up 0.3%.

GOLF Earnings Estimate Trend

Image Source: Zacks Investment Research

Price Performance & Valuation of CALY & GOLF

Callaway stock has surged 97.7% in the past year against the industry’s fall of 0.6%, while the S&P 500 witnessed growth of 18.2%. Meanwhile, Acushnet shares have gained 36.8% in the same time.

CALY & GOLF Stock 1-Year Price Performance

Image Source: Zacks Investment Research

Callaway is trading at a forward 12-month price-to-earnings (P/E) ratio of 31.21, above the industry average of 18.03 over the last year. Acushnet’s forward 12-month P/E multiple sits at 24.53 over the same time frame.

Image Source: Zacks Investment Research

Conclusion: Acushnet Has an Edge Over Callaway

Both Callaway and Acushnet are well-positioned within the global golf equipment market, but Acushnet stands out as the more compelling investment choice at this stage. Its consistent execution, premium brand strength and stable margin outlook provide a more balanced and visible earnings trajectory, offering investors a clearer risk-reward profile.

While Callaway presents meaningful upside potential through its ongoing transformation and margin-focused strategy, its near-term setup remains more uncertain. Revenue headwinds, tariff exposure and execution risks tied to its strategic reset continue to create variability in earnings visibility. Additionally, its relatively elevated valuation suggests that expectations around the turnaround are already partly reflected in the stock.

Considering these factors, Acushnet currently has the edge as the better investment option for investors seeking more stable, risk-adjusted returns.

Both Callaway and Acushnet carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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