Callaway Golf shares soared 7.3% in the last trading session to close at $30.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.5% gain over the past four weeks.

Robust demand for golf products and recovery in the company’s soft goods business have been boosting investors’ sentiment.

Price and Consensus

This maker of golf equipment and accessories is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -62.5%. Revenues are expected to be $571.69 million, up 29.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Callaway, the consensus EPS estimate for the quarter has been revised 10.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ELY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>