The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Callaway Golf (CALY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.
Callaway Golf is a member of the Consumer Discretionary sector. This group includes 259 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Callaway Golf is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CALY's full-year earnings has moved 55.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CALY has returned about 53.5% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of -12.7% on a year-to-date basis. This means that Callaway Golf is performing better than its sector in terms of year-to-date returns.
One other Consumer Discretionary stock that has outperformed the sector so far this year is Reservoir Media, Inc. (RSVR). The stock is up 38.7% year-to-date.
In Reservoir Media, Inc.'s case, the consensus EPS estimate for the current year increased 13.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Callaway Golf belongs to the Leisure and Recreation Products industry, a group that includes 24 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have lost 7.5% this year, meaning that CALY is performing better in terms of year-to-date returns.
In contrast, Reservoir Media, Inc. falls under the Media Conglomerates industry. Currently, this industry has 22 stocks and is ranked #174. Since the beginning of the year, the industry has moved -17.3%.
Investors with an interest in Consumer Discretionary stocks should continue to track Callaway Golf and Reservoir Media, Inc.. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).