The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Callaway Golf (CALY) been one of those stocks this year? 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 261 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. 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 161% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CALY has returned about 33.7% since the start of the calendar year. Meanwhile, the Consumer Discretionary sector has returned an average of -0.1% on a year-to-date basis. This means that Callaway Golf is outperforming the sector as a whole this year.
Another stock in the Consumer Discretionary sector, Ralph Lauren (RL), has outperformed the sector so far this year. The stock's year-to-date return is 3.9%.
In Ralph Lauren's case, the consensus EPS estimate for the current year increased 2.8% 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, which includes 24 individual stocks and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 6.8% so far this year, so CALY is performing better in this area.
Ralph Lauren, however, belongs to the Textile - Apparel industry. Currently, this 21-stock industry is ranked #63. The industry has moved -12.1% so far this year.
Investors interested in the Consumer Discretionary sector may want to keep a close eye on Callaway Golf and Ralph Lauren as they attempt to continue their solid performance.
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Callaway Golf Company (CALY): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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