What Happened?

Shares of golf entertainment and gear company Topgolf Callaway (NYSE:MODG) jumped 14.4% in the morning session after Jefferies analyst Randal Konik upgraded the stock's rating from Hold to Buy and raised the price target from $11 to $13. The new price target implied a potential 65% upside from where shares traded before the upgrade was announced.

Is now the time to buy Topgolf Callaway? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Topgolf Callaway’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Topgolf Callaway and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 11 months ago when the stock gained 8.9% on the news that the company reported fourth-quarter results, which beat analysts' revenue expectations, driven by a better-than-expected performance at Topgolf. That stood out as a positive in these results. 

On the other hand, its revenue guidance for the next quarter missed, and its operating margin fell short of Wall Street's estimates. In terms of 2023 highlights, the company achieved positive free cash flow both on a consolidated basis and at Topgolf. In addition, its Callaway brand finished the year with the #1 U.S. market share for clubs, woods, drivers, fairway woods, hybrids, and irons. Overall, it was a strong quarter for the company.

Investors who bought $1,000 worth of Topgolf Callaway’s shares 5 years ago would now be looking at an investment worth $416.91.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.