Trade-Ideas LLC identified Callaway Golf ( ELY) as a strong and under the radar 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 $8.0 million.
  • ELY has traded 155.7160000000000081854523159563541412353515625 options contracts today.
  • ELY is making at least a new 3-day high.
  • ELY has a PE ratio of 54.
  • ELY is mentioned 1.90 times per day on StockTwits.
  • ELY has not yet been mentioned on StockTwits today.
  • ELY is currently in the upper 20% of its 1-year range.
  • ELY is in the upper 35% of its 20-day range.
  • ELY is in the upper 45% of its 5-day range.
  • ELY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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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 7 analysts that rate Callaway Golf a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Callaway Golf has been 675,700 shares per day over the past 30 days. Callaway has a market cap of $917.8 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.26 and a short float of 2.5% with 2.26 days to cover. Shares are up 4.9% year-to-date as of the close of trading on Tuesday.

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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 increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 7.2% when compared to the same quarter one year prior, going from $35.82 million to $38.39 million.
  • 49.83% is the gross profit margin for CALLAWAY GOLF CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.00% significantly outperformed against the industry average.
  • Net operating cash flow has increased to -$71.46 million or 20.90% when compared to the same quarter last year. Despite an increase in cash flow, CALLAWAY GOLF CO's cash flow growth rate is still lower than the industry average growth rate of 52.91%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
  • ELY is off 5.61% from its price level of one year ago, reflecting the general market trend and ignoring their higher earnings per share compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

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