So far, today’s Bull of the Day, Zacks Rank #1 (Strong Buy) Callaway Golf (ELY - Snapshot Report)has been nailing it right down the fairway. Callaway Golf, together with its subsidiaries, designs, manufactures and sells golf clubs, golf bags, and other golf-related accessories. The company designs and sells under the Callaway Golf, Odyssey and Strata brand names.
Callaway Golf is in the Leisure and Recreation Products industry currently ranked in the Top 17% of our Zacks Industry rank. Several strong stocks appear in this industry including Zacks Rank #2 (Buy) Brunswick (BC - Snapshot Report) and Smith & Wesson (SWHC - Snapshot Report).Callaway is rocking a VGM score of B thanks to a Growth Style Score of A and a Momentum Score of B.
A big reason for the rank is the recent earnings estimate revision to the upside for next quarter as well as the current year. The bullish sentiment may be a result of several recent earnings surprises for the stock. Callaway has a six quarters of consecutive earnings beats. The last four earnings beats have come in at an average of 6 cents each time. Last quarter’s 3 cent beat was the smallest of the bunch. This current quarter, investors are looking for 37 cents EPS.
The stock has seen some very volatile periods over the last year. There was a strong move off the $8 level in early October 2015 to new highs near $10.25. It looks like the stock pushed its way to a double top, failing to sustain a break above that high when retested in early December. From there, the stock tumbled back down to retest the lows along with the rest of the market in mid-February. Since then the stock has retraced a good chunk of that leg lower. The $9.50 level is the next obvious resistance level. The highs are the next step after that.
No comments:
Post a Comment