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Topgolf Callaway Brands Corp. (MODG) Soars to 52-Week High, Time to Cash Out?

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Have you been paying attention to shares of Topgolf Callaway Brands (MODG - Free Report) ? Shares have been on the move with the stock up 18.1% over the past month. The stock hit a new 52-week high of $11.91 in the previous session. Topgolf Callaway has gained 48.7% since the start of the year compared to the 0.7% move for the Zacks Consumer Discretionary sector and the 0.4% return for the Zacks Leisure and Recreation Products industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2025, Topgolf Callaway reported EPS of -$0.05 versus consensus estimate of -$0.21 while it beat the consensus revenue estimate by 2.67%.

For the current fiscal year, Topgolf Callaway is expected to post earnings of -$0.16 per share on $3.93 in revenues. This represents a -169.57% change in EPS on a -7.3% change in revenues. For the next fiscal year, the company is expected to earn -$0.24 per share on $3.92 in revenues. This represents a year-over-year change of -49.11% and -0.21%, respectively.

Valuation Metrics

Though Topgolf Callaway has recently hit a 52-week high, what is next for Topgolf Callaway? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Topgolf Callaway has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Topgolf Callaway currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Topgolf Callaway meets the list of requirements. Thus, it seems as though Topgolf Callaway shares could still be poised for more gains ahead.


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