PreMarket Prep Stock Of The Day: Lefty's Historic PGA Win Boosts Callaway Golf

PreMarket Prep Stock Of The Day: Lefty's Historic PGA Win Boosts Callaway Golf

Three catalysts are working in favor of higher prices in Callaway Golf ELY. One short-term and two longer-term ones make it the PreMarket Prep Stock Of The Day.

Tee-Rific Bounce Off Mach 2020 Low: After ending 2019 at $21.20, Callaway's stock didn't participate with the rally in the S&P 500 index in January and ended the month slightly higher at $21.42. However, it fully participated in the market swoon in February and March. It finally bottomed in March at $4.75 and doubled to end the month at $10.22.

That low coincided with its October 2011 low of $4.70. It finally made a new high for the year in December, rallying to $25.26, and ended the year at $24.01.

Keeping Par With The Market In 2021: Similar to the index, the issue had a good start to the year rallying in January from its year-end close of $24.01 to $27.89. After a pause in February and March, the rally resumed in April to $28.95 and shot to an all-time high at $35.55 last week.

Here's How Much Money A $100 Bet On Phil Mickelson To Win The PGA Championship Paid Out

Longer-Term Catalysts: For starters, being primarily an outdoor sport with expansive areas to compete in, the game of golf got a boost from the pandemic, not only from old duffers like me, but attracted fans from the younger generations as well.

As discussed on Monday’s PreMarket Prep, Callaway Golf has been a seasonal ply ovaer the years and with spring and summer upon us, golfers are loading up new gear for the season.

Lefty Wins The PGA: Over the weekend, Phil Mickelson pulled off a stunning upset in the PGA Championship, becoming the oldest player to win a Grand Slam event.

What could be better advertising than Mickelson using Callaway golf clubs (with a specially-made driver) and sporting the company logo on his shirts? Just imagine what the company would have to pay the networks in order for them to featured in such a winning way.

PreMarket Prep Take And Price Action: It was evident on Saturday that if Mickelson held on to win, the issue would surely get a boost in Monday’s session.



Dennis Dick discussed the seasonality effect on the issue during Monday’s show.

From a technical point of view, the issue was bumping against a trio of highs at the $34.60 area. After that, the only notable resistance was its all-time high made last week. After a higher open, it had a brief dip to $33.84 and resumed its move higher.

As of 2 p.m., the follow-through rally has come up a few pennies shy of the aforementioned high, only reaching $35.51. In order to post a new all-time closing high, it will need to close above its May 19 close ($35.11).

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