Have you been paying attention to shares of Topgolf Callaway Brands (MODG)? Shares have been on the move with the stock up 26.3% over the past month. The stock hit a new 52-week high of $10.67 in the previous session. Topgolf Callaway has gained 34.9% since the start of the year compared to the 1.8% gain for the Zacks Consumer Discretionary sector and the -5.6% return for the Zacks Leisure and Recreation Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 6, 2025, Topgolf Callaway reported EPS of -$0.05 versus consensus estimate of -$0.21 while it beat the consensus revenue estimate by 2.67%.
For the current fiscal year, Topgolf Callaway is expected to post earnings of -$0.34 per share on $3.9 in revenues. This represents a -247.83% change in EPS on a -7.99% change in revenues. For the next fiscal year, the company is expected to earn -$0.33 per share on $3.94 in revenues. This represents a year-over-year change of 2.1% and 1.06%, respectively.
Valuation Metrics
Though Topgolf Callaway has recently hit a 52-week high, what is next for Topgolf Callaway? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Topgolf Callaway has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Topgolf Callaway currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Topgolf Callaway meets the list of requirements. Thus, it seems as though Topgolf Callaway shares could have a bit more room to run in the near term.
How Does MODG Stack Up to the Competition?
Shares of MODG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MASTERCRAFT BOAT HOLDINGS, INC. (MCFT). MCFT has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. MASTERCRAFT BOAT HOLDINGS, INC. beat our consensus estimate by 75.00%, and for the current fiscal year, MCFT is expected to post earnings of $1.28 per share on revenue of $302.95 million.
Shares of MASTERCRAFT BOAT HOLDINGS, INC. have gained 3.2% over the past month, and currently trade at a forward P/E of 15.73X and a P/CF of 14.98X.
The Leisure and Recreation Products industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MODG and MCFT, even beyond their own solid fundamental situation.
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Topgolf Callaway Brands Corp. (MODG): Free Stock Analysis Report MASTERCRAFT BOAT HOLDINGS, INC. (MCFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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