Trade-Ideas LLC identified Callaway Golf ( ELY) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Callaway Golf as such a stock due to the following factors:

  • ELY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • ELY has traded 88,021 shares today.
  • ELY is trading at 4.24 times the normal volume for the stock at this time of day.
  • ELY is trading at a new high 3.07% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ELY:

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. It offers drivers, fairway woods, hybrids, irons, wedges, and putters. The stock currently has a dividend yield of 0.4%. ELY has a PE ratio of 54. Currently there are 5 analysts that rate Callaway Golf a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Callaway Golf has been 868,500 shares per day over the past 30 days. Callaway has a market cap of $855.2 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.31 and a short float of 3.1% with 4.11 days to cover. Shares are down 3.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Callaway Golf as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues rose by 13.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CALLAWAY GOLF CO has improved earnings per share by 38.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CALLAWAY GOLF CO increased its bottom line by earning $0.17 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.17).
  • ELY's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems.
  • After a year of stock price fluctuations, the net result is that ELY's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Leisure Equipment & Products industry and the overall market, CALLAWAY GOLF CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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