Core Insights - The Zacks Leisure and Recreation Products industry is experiencing growth due to increased health and fitness awareness, leading to solid demand for fitness products and outdoor recreation items [1][5]. Industry Overview - The industry includes companies that provide a range of recreational products and services, such as amusement products, swimming pools, marine products, and outdoor equipment. Economic growth, a healthy labor market, and rising disposable income drive consumer demand [2]. Trends Influencing the Industry - The U.S. golf business is in a growth cycle, with increased participation and engagement across various age groups. Off-course experiences are attracting younger consumers, broadening the sport's appeal [3]. - Higher play frequency among golfers is leading to increased demand for upgraded equipment, while innovations in fitting and data analytics are enhancing spending per participant [4]. - There is robust demand for fitness-related products, with consumers investing in home workout equipment and digital fitness platforms, driven by a focus on personal well-being [5]. - Technology is redefining engagement in the industry, with smart fitness equipment and app-enabled products enhancing customer experiences and extending lifetime value [6]. Industry Performance - The Zacks Leisure and Recreation Products industry holds a Zacks Industry Rank of 110, placing it in the top 45% of over 244 Zacks industries, indicating positive near-term prospects [7][8]. - Despite the positive outlook, the industry has underperformed the S&P 500, with a collective decline of 2.2% over the past year compared to the S&P 500's rise of 18.3% [10]. Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 21.4X, which is lower than the S&P 500's 23.11X and the sector's 18.45X. The industry has seen a range from 13.25X to 37.40X over the past five years, with a median of 20.67X [13]. Notable Companies - **Topgolf Callaway**: The company has seen a resurgence in traffic and sales, particularly in its core customer segment, with a Zacks Rank of 1 (Strong Buy) [14]. The stock has increased by 48.9% in the past six months [15]. - **Amer Sports**: Benefiting from strong demand for premium brands, particularly in footwear, with a Zacks Rank of 2 (Buy). The company expects a 22% year-over-year growth in earnings per share [19][20]. - **Acushnet Holdings**: Strong global golf participation and demand for Titleist products are driving growth, with a projected 7.1% increase in earnings for 2026 [23][24]. - **Pool Corporation**: Expected to benefit from steady maintenance demand and digital enhancements, with a forecasted 6.6% increase in earnings for 2026 [27][28].

Core Viewpoint - The company has successfully completed the sale of a 60% stake in its Topgolf and Toptracer businesses for approximately $1.1 billion, which will enhance its financial position and allow for strategic initiatives such as debt repayment and stock repurchase [1][5]. Group 1: Financial Transactions - The company received approximately $800 million in cash proceeds from the sale, net of working capital adjustments and transaction expenses [1]. - Following the sale, the company repaid $1 billion of outstanding borrowings under its term loan B facility [2]. - After the repayment, the company has approximately $480 million in outstanding debt and $680 million in unrestricted cash and cash equivalents [3]. Group 2: Stock Repurchase Program - The company's Board of Directors has authorized a new stock repurchase program of up to $200 million, which will be executed based on market conditions and other factors [4]. - The repurchase program replaces any unused portion of the prior stock repurchase program and does not require the company to acquire a specific number of shares [4]. Group 3: Corporate Changes - The company plans to change its corporate name back to "Callaway Golf Company" and will change its ticker symbol to "CALY" effective on or about January 16, 2026 [5].