6 Best Sporting Goods Stocks to Buy in 2025
Sporting goods might not sound like the flashiest industry, but it’s a big business and one with steady demand.
Every year, a new crop of kids needs new equipment and gear, and there are plenty of weekend warriors out there looking for the right stuff to help them stay in shape.
Sporting goods are typically considered a discretionary product since they aren’t a need, but even in a tough economy, consumers will still buy basketballs and bike pumps, though they might trade down to a cheaper product.
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Top sporting goods stocks in 2025
Top sporting goods stocks in 2025
These are some of the best sporting goods stocks to buy right now:
Sporting Goods Company | Market Capitalization | Description |
|---|---|---|
Dick’s Sporting Goods (NYSE:DKS) | $19 billion | Nation’s largest sporting goods retailer. |
Academy Sports & Outdoor (NYSE:ASO) | $4.1 billion | Sporting goods chain based in Texas, serving primarily the South and Midwest. |
Topgolf Callaway Brands Corp. (NYSE:MODG) | $1.6 billion | Seller of golf products under Callaway and other brands. |
Acushnet Holdings (NYSE:GOLF) | $4.4 billion | Owner of golf brands such as Titleist and FootJoy. |
Foot Locker (NYSE:FL) | $2 billion | Largest athletic footwear chain in the U.S. |
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1. Dick’s Sporting Goods
Dick’s Sporting Goods (DKS -4.0%) is the undisputed leader of the sporting goods industry, with more than 850 stores, including Golf Galaxy and Field & Stream locations. Although that’s fewer locations than some of its peers, Dick’s superstores average about 50,000 square feet, making them much larger than the typical sporting goods store.
The company’s market dominance has been further cemented by a rash of bankruptcies in sporting goods retail, including filings by Gander Mountain, City Sports, and Bob’s, the acquisition of Hibbett Sports, and declines at Big 5 Sporting Goods and Sportsman’s Warehouse.
The company is investing in e-commerce and experiential in-store features such as baseball simulators and golf ball tracking technology. It also opened more than a dozen House of Sports experiential retail superstores that include a running track and a climbing wall. That shows the company is leveraging its market power and differentiating itself from the competition.
With its financial status enabling it to stand out from other retailers, Dick’s should continue to be the industry leader. With comparable sales growth in 2024, the company is bucking the broader headwinds in the consumer discretionary sector.
2. Academy Sports & Outdoor
Academy Sports & Outdoors (ASO -4.33%) is the second-largest general sporting goods chain in the country. Based in Texas, Academy predominantly operates in the South and Midwest regions, and its sales are well balanced across outdoor, apparel, sports & recreation, and footwear. About 40% of its stores are in Texas.
Its stores average around 70,000 square feet, so it benefits from a similar superstore model as Dick’s. It operates more than 300 stores.
The company has a number of private label brands, in addition to national brands. It said 55% of its customers purchased a private label brand from the retailer in 2023.
Academy continues to focus on expansion, planning on opening at least 20 stores in fiscal 2025, although the company saw sales and profits decline through 2024 due to increased supply chain costs and inflation pressuring consumers.
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3. Topgolf Callaway Brands Corp.
In October 2020, Callaway, the market leader in golf clubs and equipment, announced plans to acquire Topgolf, which combines restaurant service with virtual golfing. The acquisition, finalized in the first quarter of 2021, adds a unique revenue stream that can help create brand loyalty to Callaway products. Topgolf also introduces more people to the game, increasing adoption and driving sales of golf equipment and related products.
The company announced in September 2024 that it would separate into two independent companies. It plans to spin off the Topgolf business to shareholders in a tax-free transaction, making it a stand-alone public company.
The decision seems to be an acknowledgment that the combination didn’t produce the kind of synergies management had hoped.
The golf market has faced some headwinds since the COVID-19 pandemic ended, as sales and profits have fallen through 2024.
The spin-off will give investors a choice between Callaway, a golf equipment business, and Topgolf, a golf entertainment business.
4. Acushnet Holdings
Acushnet (GOLF -1.54%) is the parent company of Titleist, the leading golf ball maker, and FootJoy, the top golf shoe brand. That brand strength is central to the company’s strategy, and it has shown discipline in resisting acquisitions and diluting focus from the two brands.
Acushnet says it is focused on serving dedicated golfers because people who are serious about the sport are the most consistent purchasers of golf products. Avid golfers are also most likely to spend money on premium golf products. Since golf balls are a consumable product, the company’s performance is closely tied to the aggregate number of rounds of golf played.
That strategy seems to be paying off as the company delivered steady growth through 2024, and its expansion of the Titleist brand into golf clubs and golf gear is helping drive its growth.
Acushnet is also lifting earnings per share through share buybacks. Given its brand strength and market leadership, Acushnet looks to be in position to continue delivering steady growth for investors.
5. Foot Locker
Foot Locker (FL -0.05%) is the country’s biggest athletic footwear retailer, with about 2,600 stores under its namesake brand and its Footaction, Champs Sports, and Sidestep locations. As a sneaker and apparel retailer, Foot Locker doesn’t fit the exact definition of a sporting goods stock, but it is worth considering since people buying sports equipment need athletic clothing and shoes to wear.
More than half of Foot Locker’s sales are of Nike (NKE -1.83%) products, with 75% of the company’s purchases last year going to the sportswear giant. The company’s special relationship with Nike is both a competitive advantage and a risk. Foot Locker can obtain unique product releases and team up with Nike on in-store experiences, but it also heavily depends on a single, powerful vendor. Nike had downplayed its relationships with retail chains like Foot Locker, but it now seems to be reversing that strategy.
Foot Locker has been shrinking its store base and focusing on streamlining its inventory to control costs and boost margins, and it had returned to comparable sales growth as of the third quarter of 2024. There’s still more work to be done in its turnaround strategy, which is targeting an operating margin of at least 8.5% by 2028, which would mean more than tripling profit from current levels.
If the company can accomplish that, the stock will surely move higher.
Related investing topics
Should you invest?
Should you buy sporting goods stocks?
In general, demand for sporting goods is subject to forces outside of company control. Interest in golf, hunting, or basketball tends to fluctuate in ways these companies are unable to influence, and revenue growth in this mature sector is slow.
Still, a number of these companies have outperformed the market in recent years, even before the pandemic, which is a good sign that they could continue to beat the market. The best sporting goods companies are capitalizing on the transition to e-commerce and experiential retail. While sporting goods and sports stocks aren’t going to offer the highest revenue growth, they can be reliable winners if bought for the right price.
