Is Callaway Golf Company (CALY) Stock Outpacing Its Consumer Discretionary Peers This Year?

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Callaway Golf (CALY) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Callaway Golf is one of 255 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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).

Over the past 90 days, the Zacks Consensus Estimate for CALY's full-year earnings has moved 216.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, CALY has moved about 19.9% on a year-to-date basis. At the same time, Consumer Discretionary stocks have lost an average of 2.9%. This shows that Callaway Golf is outperforming its peers so far this year.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Gray Media (GTN). The stock is up 21.5% year-to-date.

Over the past three months, Gray Media's consensus EPS estimate for the current year has increased 17.9%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Callaway Golf is a member of the Leisure and Recreation Products industry, which includes 24 individual companies and currently sits at #67 in the Zacks Industry Rank. Stocks in this group have gained about 5.7% so far this year, so CALY is performing better this group in terms of year-to-date returns.

Gray Media, however, belongs to the Broadcast Radio and Television industry. Currently, this 19-stock industry is ranked #73. The industry has moved -9% so far this year.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Callaway Golf and Gray Media as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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