For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Callaway Golf (CALY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Callaway Golf is one of 259 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #6 in 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. Callaway Golf is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for CALY's full-year earnings has moved 55.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CALY has returned about 55.7% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 8% on average. As we can see, Callaway Golf is performing better than its sector in the calendar year.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Cinemark Holdings (CNK). The stock is up 26.6% year-to-date.
For Cinemark Holdings, the consensus EPS estimate for the current year has increased 6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Callaway Golf belongs to the Leisure and Recreation Products industry, a group that includes 24 individual stocks and currently sits at #86 in the Zacks Industry Rank. Stocks in this group have lost about 5.2% so far this year, so CALY is performing better this group in terms of year-to-date returns.
Cinemark Holdings, however, belongs to the Film and Television Production and Distribution industry. Currently, this 8-stock industry is ranked #88. The industry has moved +6.1% so far this year.
Callaway Golf and Cinemark Holdings could continue their solid performance, so investors interested in Consumer Discretionary stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).