For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Callaway Golf (ELY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ELY and the rest of the Consumer Discretionary group's stocks.
Callaway Golf is one of 243 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ELY is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ELY's full-year earnings has moved 23.15% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ELY has returned 68.63% so far this year. In comparison, Consumer Discretionary companies have returned an average of 5.05%. This means that Callaway Golf is outperforming the sector as a whole this year.
Looking more specifically, ELY belongs to the Leisure and Recreation Products industry, which includes 15 individual stocks and currently sits at #25 in the Zacks Industry Rank. On average, this group has gained an average of 11.60% so far this year, meaning that ELY is performing better in terms of year-to-date returns.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to ELY as it looks to continue its solid performance.