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Callaway Golf and Albany International have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 5, 2026 – Zacks Equity Research shares Callaway Golf Co. (CALY - Free Report) as the Bull of the Day and Albany International Corp. (AIN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Home Depot, Inc. (HD - Free Report) , Floor & Decor Holdings, Inc. (FND - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) .
Callaway Golf Co., a Zacks Rank #1 (Strong Buy), designs, manufactures, and sells golf equipment, apparel, and other related accessories in the US and internationally. Callaway has been the #1 equipment club sales company in recent years in the US and is the #2 ball brand behind Titleist.
The stock recently broke out to a 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this market leader.
Callaway is part of the Zacks Leisure and Recreation Products industry group, which currently ranks in the top 36% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Back in 2006, Callaway recognized Topgolf's potential early and invested in the company that was transforming driving ranges into competitive gameplay destinations. Callaway eventually controlled as much as 14% of Topgolf before the two entities completed a full merger back in October 2020. The Topgolf brand boasts nearly 100 locations across the US along with 4 international venues.
Just recently, Callaway sold a majority stake of 60% in its Topgolf and Toptracer businesses to private equity funds in a deal valued at $1.1 billion. Callaway received about $800 million in cash proceeds after adjustments and transaction expenses, and as part of the deal, the company repaid $1 billion in outstanding debt and also authorized the repurchase of up to $200 million in common stock.
The deal reduced leverage for Callaway while still allowing potential future value creation through its retained stake in Topgolf. This transformation is enabling Callaway to reaffirm its position as a leading pure-play golf business. Callaway plans to put part of the proceeds back into its equipment and apparel businesses.
Earlier this month, Callaway introduced its new set of Quantum drivers, fairway woods, irons and hybrids, engineered with groundbreaking technologies. Its Odyssey putters and Travis Mathew apparel are also under the Callaway brand. The company sells its products through golf retailers, sporting goods retailers, department stores, as well as directly to consumers through its retail stores and websites.
Earnings Trends and Future Estimates
Callaway has shown a consistent ability to deliver positive earnings surprises; the leading golf company surpassed the earnings mark in each of the past 11 quarters. Callaway delivered a trailing four-quarter average surprise of nearly 300%, reflecting strong execution.
This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.
The California-based company has been the beneficiary of improving earnings estimate revisions as of late. Looking into fiscal 2026, analysts have raised their annual EPS estimates by 250% in the past 60 days. The Zacks Consensus Estimate now stands at 27 cents per share, reflecting nearly 260% growth relative to the prior year.
Let's Get Technical
Callaway's stock performance is reflective of the fundamental story, as shares have surged to a series of 52-week highs. The stock went from lows of around $5 last year to over $15 per share here in January 2026. It's quite rare to have a penny stock begin to reach these levels and signals that higher prices are likely ahead.
Only stocks that are in extremely powerful uptrends are able to make this type of price move and widely outperform the market. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how shares remain above upward-sloping 50-day (blue line) and 200-day (red line) moving averages. The stock has advanced more than 70% over the past six months, and momentum appears to be continuing this year. With both strong fundamentals and technicals, CALY stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Callaway has recently witnessed positive revisions. As long as this trend remains intact (and CALY continues to deliver earnings beats), the stock will likely continue its bullish run throughout this year.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Currently, CALY carries a Zacks Rank #1 (Strong Buy), driven by favorable estimate momentum.
Solid institutional buying should continue to provide a tailwind for the stock price. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put Callaway on your shortlist.
Albany International Corp. engages in the machine clothing and engineered composites businesses. A global textiles and materials processing company, Albany specializes in machine clothing for paper mills and engineered structures for aerospace and other industries.
Key challenges remain for Albany in 2026. Deteriorating returns on capital make it clear that management's attempts at new investments are destroying value. Sales growth has been anemic in recent years and well below other industrial companies. A difficult macroeconomic environment and lingering inflationary conditions do not bode well for the company's outlook.
As we'll see, revenues are expected to decline in the current fiscal year. With the stock trading at over 19 times forward earnings, the lack of growth potential simply doesn't warrant a bullish stance.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Albany International is a component of the Zacks Textile – Products industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has throughout the past year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Albany's stock widely underperformed the market over the past year. A recent uptick into February presents a compelling short opportunity.
History of Earnings Misses & Deteriorating Outlook
Albany missed the earnings mark in two of the past four quarters. The company delivered a trailing four-quarter average earnings miss of -1.35%. Falling short of earnings estimates is a recipe for underperformance, and AIN is no exception.
The textiles company has been on the receiving end of negative earnings estimate revisions as of late. Looking into fiscal 2026, analysts cut estimates by -1.0% in the past 60 days. The Zacks Consensus EPS Estimate is now $2.96 per share. Revenues are anticipated to decline -7.5% this year to $1.05 billion.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, AIN stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
AIN stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that AIN stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of AIN until the situation shows major signs of improvement.
Additional content:
Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever
As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. and Lowe's Companies, Inc., has seen its shares fall 7.9% in the past year compared with the industry's decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe's has risen 6.3% in the same period.
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry's 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe's (22.41).
The Zacks Consensus Estimate for Home Depot's current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Home Depot currently carries a Zacks Rank #4 (Sell).
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Callaway Golf and Albany International have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 5, 2026 – Zacks Equity Research shares Callaway Golf Co. (CALY - Free Report) as the Bull of the Day and Albany International Corp. (AIN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Home Depot, Inc. (HD - Free Report) , Floor & Decor Holdings, Inc. (FND - Free Report) and Lowe's Companies, Inc. (LOW - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Callaway Golf Co., a Zacks Rank #1 (Strong Buy), designs, manufactures, and sells golf equipment, apparel, and other related accessories in the US and internationally. Callaway has been the #1 equipment club sales company in recent years in the US and is the #2 ball brand behind Titleist.
The stock recently broke out to a 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this market leader.
Callaway is part of the Zacks Leisure and Recreation Products industry group, which currently ranks in the top 36% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Back in 2006, Callaway recognized Topgolf's potential early and invested in the company that was transforming driving ranges into competitive gameplay destinations. Callaway eventually controlled as much as 14% of Topgolf before the two entities completed a full merger back in October 2020. The Topgolf brand boasts nearly 100 locations across the US along with 4 international venues.
Just recently, Callaway sold a majority stake of 60% in its Topgolf and Toptracer businesses to private equity funds in a deal valued at $1.1 billion. Callaway received about $800 million in cash proceeds after adjustments and transaction expenses, and as part of the deal, the company repaid $1 billion in outstanding debt and also authorized the repurchase of up to $200 million in common stock.
The deal reduced leverage for Callaway while still allowing potential future value creation through its retained stake in Topgolf. This transformation is enabling Callaway to reaffirm its position as a leading pure-play golf business. Callaway plans to put part of the proceeds back into its equipment and apparel businesses.
Earlier this month, Callaway introduced its new set of Quantum drivers, fairway woods, irons and hybrids, engineered with groundbreaking technologies. Its Odyssey putters and Travis Mathew apparel are also under the Callaway brand. The company sells its products through golf retailers, sporting goods retailers, department stores, as well as directly to consumers through its retail stores and websites.
Earnings Trends and Future Estimates
Callaway has shown a consistent ability to deliver positive earnings surprises; the leading golf company surpassed the earnings mark in each of the past 11 quarters. Callaway delivered a trailing four-quarter average surprise of nearly 300%, reflecting strong execution.
This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.
The California-based company has been the beneficiary of improving earnings estimate revisions as of late. Looking into fiscal 2026, analysts have raised their annual EPS estimates by 250% in the past 60 days. The Zacks Consensus Estimate now stands at 27 cents per share, reflecting nearly 260% growth relative to the prior year.
Let's Get Technical
Callaway's stock performance is reflective of the fundamental story, as shares have surged to a series of 52-week highs. The stock went from lows of around $5 last year to over $15 per share here in January 2026. It's quite rare to have a penny stock begin to reach these levels and signals that higher prices are likely ahead.
Only stocks that are in extremely powerful uptrends are able to make this type of price move and widely outperform the market. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how shares remain above upward-sloping 50-day (blue line) and 200-day (red line) moving averages. The stock has advanced more than 70% over the past six months, and momentum appears to be continuing this year. With both strong fundamentals and technicals, CALY stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Callaway has recently witnessed positive revisions. As long as this trend remains intact (and CALY continues to deliver earnings beats), the stock will likely continue its bullish run throughout this year.
Bottom Line
Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Currently, CALY carries a Zacks Rank #1 (Strong Buy), driven by favorable estimate momentum.
Solid institutional buying should continue to provide a tailwind for the stock price. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put Callaway on your shortlist.
Bear of the Day:
Albany International Corp. engages in the machine clothing and engineered composites businesses. A global textiles and materials processing company, Albany specializes in machine clothing for paper mills and engineered structures for aerospace and other industries.
Key challenges remain for Albany in 2026. Deteriorating returns on capital make it clear that management's attempts at new investments are destroying value. Sales growth has been anemic in recent years and well below other industrial companies. A difficult macroeconomic environment and lingering inflationary conditions do not bode well for the company's outlook.
As we'll see, revenues are expected to decline in the current fiscal year. With the stock trading at over 19 times forward earnings, the lack of growth potential simply doesn't warrant a bullish stance.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, Albany International is a component of the Zacks Textile – Products industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has throughout the past year.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Albany's stock widely underperformed the market over the past year. A recent uptick into February presents a compelling short opportunity.
History of Earnings Misses & Deteriorating Outlook
Albany missed the earnings mark in two of the past four quarters. The company delivered a trailing four-quarter average earnings miss of -1.35%. Falling short of earnings estimates is a recipe for underperformance, and AIN is no exception.
The textiles company has been on the receiving end of negative earnings estimate revisions as of late. Looking into fiscal 2026, analysts cut estimates by -1.0% in the past 60 days. The Zacks Consensus EPS Estimate is now $2.96 per share. Revenues are anticipated to decline -7.5% this year to $1.05 billion.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, AIN stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
AIN stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that AIN stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of AIN until the situation shows major signs of improvement.
Additional content:
Here's Why Home Depot's Pro Strategy Is a Long-Term Growth Lever
As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from professional customers. By focusing on these high-value customers who manage multifaceted projects, Home Depot aims to differentiate itself from traditional retail competitors.
The company is building a Pro ecosystem that combines stores, supply-chain assets, digital tools and dedicated sales teams. New offerings, such as a project planning tool and an artificial intelligence-driven blueprint takeoff application, are designed to convert complex manual processes into efficient digital workflows. These tools allow Pros to manage projects, estimate materials and complete purchases within a single platform, positioning Home Depot as a one-stop solution.
The Pro strategy is also supported by the integration of SRS and GMS, which extends reach into roofing, drywall and other specialty categories. Management noted that cross-selling among Home Depot, SRS and GMS is already underway through coordinated sales efforts, enabling account handoffs and larger project wins.
Management views the Pro market as a massive opportunity for share gains, particularly as Home Depot refines its ability to handle large-order deliveries and job-site services. This strategic focus positions the company to benefit as housing turnover and broader construction activity improve.
What the Latest Metrics Say About Home Depot
Home Depot, which competes with Floor & Decor Holdings, Inc. and Lowe's Companies, Inc., has seen its shares fall 7.9% in the past year compared with the industry's decline of 14.1%. While shares of Floor & Decor Holdings have plunged 35.2%, Lowe's has risen 6.3% in the same period.
From a valuation standpoint, Home Depot trades at a forward price-to-earnings ratio of 26.27, higher than the industry's 20.95. HD carries a Value Score of D. Home Depot is trading at a discount to Floor & Decor Holdings (with a forward 12-month P/E ratio of 30.48) but at a premium to Lowe's (22.41).
The Zacks Consensus Estimate for Home Depot's current financial-year sales implies year-over-year growth of 3.3%, while the same for earnings per share suggests a decline of 4.9%. For the next fiscal year, the consensus estimate indicates a 4.3% rise in sales and 4.4% growth in earnings.
Home Depot currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.