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Are Consumer Discretionary Stocks Lagging TOPGOLF CALLAWY (MODG) This Year?

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For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Topgolf Callaway Brands (MODG - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Topgolf Callaway Brands is one of 265 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Topgolf Callaway Brands is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for MODG's full-year earnings has moved 57.6% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that MODG has returned about 46.7% since the start of the calendar year. In comparison, Consumer Discretionary companies have returned an average of 2.7%. This means that Topgolf Callaway Brands is outperforming the sector as a whole this year.

Sphere Entertainment (SPHR - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 122.9%.

For Sphere Entertainment, the consensus EPS estimate for the current year has increased 8.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Topgolf Callaway Brands belongs to the Leisure and Recreation Products industry, a group that includes 24 individual stocks and currently sits at #92 in the Zacks Industry Rank. This group has gained an average of 2.3% so far this year, so MODG is performing better in this area.

On the other hand, Sphere Entertainment belongs to the Media Conglomerates industry. This 17-stock industry is currently ranked #187. The industry has moved -0.8% year to date.

Investors with an interest in Consumer Discretionary stocks should continue to track Topgolf Callaway Brands and Sphere Entertainment. These stocks will be looking to continue their solid performance.


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