Callaway Golf (ELY - Free Report) closed at $21.67 in the latest trading session, marking a -1.5% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Heading into today, shares of the maker of golf equipment and accessories had lost 6.34% over the past month, lagging the Consumer Discretionary sector's loss of 5.5% and the S&P 500's loss of 6.28% in that time.
ELY will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2019. The company is expected to report EPS of -$0.32, down 113.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $176.49 million, down 7.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.05 per share and revenue of $1.24 billion. These totals would mark changes of +98.11% and +18.11%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ELY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.1% higher. ELY is currently a Zacks Rank #2 (Buy).
In terms of valuation, ELY is currently trading at a Forward P/E ratio of 20.93. This valuation marks a premium compared to its industry's average Forward P/E of 14.7.
Investors should also note that ELY has a PEG ratio of 0.84 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Products industry currently had an average PEG ratio of 0.97 as of yesterday's close.
The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.