The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Callaway Golf is a stock many investors are watching right now. ELY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that ELY has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ELY's industry has an average PEG of 0.61 right now. Over the past 52 weeks, ELY's PEG has been as high as 1.81 and as low as 0.56, with a median of 0.92.
Another notable valuation metric for ELY is its P/B ratio of 1.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ELY's current P/B looks attractive when compared to its industry's average P/B of 3.22. Within the past 52 weeks, ELY's P/B has been as high as 3.06 and as low as 1.93, with a median of 2.41.
Finally, we should also recognize that ELY has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ELY's current P/CF looks attractive when compared to its industry's average P/CF of 13.49. Over the past year, ELY's P/CF has been as high as 25.29 and as low as 6.68, with a median of 17.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Callaway Golf is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELY feels like a great value stock at the moment.
Image: Bigstock
Is Callaway Golf (ELY) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Callaway Golf is a stock many investors are watching right now. ELY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors will also notice that ELY has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ELY's industry has an average PEG of 0.61 right now. Over the past 52 weeks, ELY's PEG has been as high as 1.81 and as low as 0.56, with a median of 0.92.
Another notable valuation metric for ELY is its P/B ratio of 1.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ELY's current P/B looks attractive when compared to its industry's average P/B of 3.22. Within the past 52 weeks, ELY's P/B has been as high as 3.06 and as low as 1.93, with a median of 2.41.
Finally, we should also recognize that ELY has a P/CF ratio of 11.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ELY's current P/CF looks attractive when compared to its industry's average P/CF of 13.49. Over the past year, ELY's P/CF has been as high as 25.29 and as low as 6.68, with a median of 17.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Callaway Golf is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ELY feels like a great value stock at the moment.