Core Viewpoint - Topgolf Callaway Brands (MODG) has shown significant stock performance, with a 26.3% increase over the past month and a 34.9% rise since the beginning of the year, outperforming both the Zacks Consumer Discretionary sector and the Zacks Leisure and Recreation Products industry [1][2]. Financial Performance - Topgolf Callaway has consistently beaten earnings estimates, reporting an EPS of -$0.05 against a consensus estimate of -$0.21 in its last earnings report [2]. - For the current fiscal year, the company is expected to post earnings of -$0.34 per share on revenues of $3.9 billion, reflecting a -247.83% change in EPS and a -7.99% change in revenues [3]. - The next fiscal year projections indicate an expected EPS of -$0.33 per share on revenues of $3.94 billion, showing a year-over-year change of 2.1% in EPS and 1.06% in revenues [3]. Valuation Metrics - Topgolf Callaway has a Value Score of A, with Growth and Momentum Scores of C and B, respectively, resulting in a combined VGM Score of A [6]. - The stock currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings estimate revision trend [7][8]. Competitive Position - In comparison to industry peers, MASTERCRAFT BOAT HOLDINGS, INC. (MCFT) also holds a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, beating consensus estimates by 75% [9][10]. - The Leisure and Recreation Products industry is positioned in the top 31% of all industries, suggesting favorable conditions for both MODG and MCFT [11].

Group 1: Holley Inc. (NYSE:HLLY) - Holley Inc. is trading at $3.62 with a target price of $2.20, indicating a potential downside of 39.35% [1][5] - The stock is excluded from coverage due to a pessimistic outlook from investment analysts [1] Group 2: Strattec Security Corporation (STRT) - Strattec Security Corporation is trading at $67.11 with a target price of $81.90, suggesting a growth potential of 22.03% [2][4][5] - The company has a market cap of $280.87 million and a price-to-earnings (P/E) ratio of 13.42, indicating financial stability [2] Group 3: MasterCraft Boat Holdings, Inc. (MCFT) - MasterCraft Boat Holdings is currently priced at $20.13 with a target price of $14.42, facing a potential downside of 28.39% [3][5] - The company has a market cap of $328.85 million, but its P/E ratio of 43.41 suggests it may be overvalued [3] - The earnings per share (EPS) of $0.81 indicates limited profitability compared to peers [3]

Core Insights - The company reported Q1 net sales of $69 million, an increase of $3.6 million or 5.6% year over year, driven by pricing, favorable option sales, and lower dealer incentives [12][14] - Adjusted EBITDA rose to $6.7 million, with a margin improvement of 380 basis points to 9.7% [14] - The company maintains a strong financial position with $67.3 million in cash and no debt, allowing for continued capital return to shareholders through share repurchases [14][15] Operational Performance - The company improved pipeline inventory levels by 27% year over year, aligning dealer inventory with expectations and maintaining inventory turns at pre-COVID levels [5][6] - The launch of the new X24 model has generated strong initial dealer and consumer response, reinforcing the company's commitment to innovation and category leadership [7][8] - The pontoon segment showed operational improvements, with a refreshed product lineup well-received at dealer meetings, including the introduction of the Conquest SE model [9][10] Market Outlook - The company anticipates a retail decline of 5-10% for the MasterCraft segment due to ongoing macroeconomic challenges, including elevated interest rates [6][23] - Despite near-term uncertainties, the company is positioned to capitalize on future market stabilization and growth opportunities [19][31] - The company plans to ramp up production in the second half of the fiscal year to meet seasonal demand and support new product initiatives [16][31] Financial Guidance - For fiscal 2026, consolidated net sales are projected between $295 million and $310 million, with adjusted EBITDA expected between $30 million and $35 million [15] - Adjusted earnings per share are forecasted to be between $1.18 and $1.43, reflecting confidence in the company's long-term outlook [15] - The company continues to prioritize returning capital to shareholders, with expectations for total repurchases to exceed prior year levels by the end of the fiscal year [15]

Core Viewpoint - ScanSource, Inc. is set to report its first-quarter fiscal 2026 results on November 6, with revenue estimates indicating a slight growth of 1.2% year-over-year and earnings per share expected to improve by 8% from the previous year [1]. Financial Estimates - The Zacks Consensus Estimate for revenues in the upcoming quarter is $784.85 million, reflecting a 1.2% increase from the same quarter last year [1]. - The consensus estimate for quarterly earnings is 91 cents per share, suggesting an 8% improvement compared to the year-ago quarter [1]. - The estimates for earnings and revenues have remained unchanged over the past 60 days [1]. Earnings Surprise History - ScanSource has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average earnings surprise of 7.10% [2][3]. - The earnings surprise percentages for the last four quarters were 12.09%, 11.69%, -4.49%, and 9.09% respectively [3]. Segment Performance - The Specialty Technology Solutions segment is expected to report sales of $752 million, indicating stable performance compared to the previous year [7]. - The Intelisys & Advisory segment's sales are estimated at $24.4 million, representing a 5% increase from $23.3 million in the same quarter last year [9]. - The company anticipates modest revenue growth in the first half of fiscal 2026, with expectations for a stronger performance in the second half [9]. Cost Management - ScanSource has implemented cost reduction and restructuring programs, projected to yield approximately $10.5 million in annualized savings in selling, general, and administrative expenses [10]. - These ongoing cost-saving measures are expected to contribute positively to earnings for the quarter [11]. Stock Performance - Year-to-date, ScanSource's shares have declined by 10.9%, contrasting with a 0.2% growth in the industry [12].

Core Viewpoint - Malibu Boats reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.08 per share a year ago, representing an earnings surprise of +150.00% [1] Financial Performance - The company posted revenues of $194.73 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.19% and increasing from $171.58 million year-over-year [2] - Over the last four quarters, Malibu Boats has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Malibu Boats shares have declined approximately 13.4% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $194.7 million, and for the current fiscal year, it is $1.22 on revenues of $786.83 million [7] Industry Context - The Leisure and Recreation Products industry, to which Malibu Boats belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Malibu Boats' stock performance [5]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Company Summaries - **nCino (NCNO)**: A provider of cloud-based software for financial institutions, with a 9.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - **Vertiv (VRT)**: A leading global provider of critical digital infrastructure and services for data centers and communication networks, experiencing a 7.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - **Bread Financial (BFH)**: A tech-forward financial services company offering personalized payment, lending, and saving solutions, with a 7.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - **Medpace (MEDP)**: A global full-service clinical contract research organization providing clinical development services, seeing a 3.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - **MasterCraft Boat (MCFT)**: A company that designs, manufactures, and markets recreational powerboats, with a 3.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [5]

Core Insights - MasterCraft Boat Company is relaunching the Rider Experience series in partnership with the World Wake Association (WWA), marking a significant commitment to growing watersports participation and community engagement [1][3][4] Group 1: Event Series Overview - The MasterCraft WWA Rider Experience series will consist of five stops across the country in 2026, each accommodating up to 100 participants [4][5] - The series aims to create pathways for riders of all levels, from beginners to aspiring national champions, emphasizing inclusivity and long-term progression [4][3] Group 2: Partnership and Goals - The partnership between MasterCraft and WWA is designed to enhance the event experience, expand access, and provide meaningful opportunities for enthusiasts [3][4] - The collaboration aims to showcase the energy of wakesports and inspire a new generation of riders, leveraging MasterCraft's brand leadership and WWA's community credibility [7][4] Group 3: Event Features - Each event will include professional coaching from MasterCraft's athletes, community-building activities, and national qualifying opportunities for competitive riders [5][6] - The series will feature the all-new MasterCraft X24, which is expected to elevate the competitive experience in wakesports [7] Group 4: Company Background - MasterCraft is recognized for its industry-leading quality, comfort, and craftsmanship in premium performance sport boats, with a focus on innovative design and superior ride characteristics [8][10] - The company has a rich history of innovation since its founding in 1968 and continues to aim for excellence in the watersports industry [10][11]

Core Insights - The article discusses the advantages of investing in debt-free or low-debt small-cap stocks, especially in the current economic climate where corporate bankruptcies are rising due to high interest rates and inflation pressures [2][4]. Industry Overview - Small-cap companies often face uneven cash flows, making high leverage a potential liability. In contrast, debt-free or low-debt companies can reinvest in operations, pursue acquisitions, or return capital to shareholders, providing a competitive edge during economic downturns [2]. - U.S. corporate bankruptcy filings are projected to reach their highest first-half total since 2010, with 371 filings year-to-date, indicating significant pressure on balance sheets across various sectors [2]. Market Performance - Despite economic challenges, broader equity markets are on an upward trend, with major indices like the S&P 500, Nasdaq, and Dow reaching record highs, driven by significant gains in companies like Nvidia [3]. Investment Strategy - The methodology for selecting the 10 Best Debt Free Small Cap Stocks involved using the Finviz screener to identify stocks with a market capitalization under $2 billion and a favorable enterprise value to market cap ratio. The stocks were ranked based on the number of hedge funds holding stakes as of Q2 2025 [7][8]. Company Highlights - **Anavex Life Sciences Corp. (NASDAQ:AVXL)**: - EV to Market Cap: 0.86 - Number of Hedge Fund Holders: 9 - Recently received a 'Buy' rating with a $42 price target following positive Phase 2b/3 Alzheimer's data, indicating significant upside potential [9][10][11]. - **Daqo New Energy Corp. (NYSE:DQ)**: - EV to Market Cap: 0.08 - Number of Hedge Fund Holders: 10 - Recently faced a court ruling requiring compensation of approximately $453,000, but the overall impact on the company remains uncertain [12][13]. - **MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT)**: - EV to Market Cap: 0.78 - Number of Hedge Fund Holders: 11 - Announced the addition of five new dealerships in Mexico and Germany as part of its international expansion strategy, enhancing its market presence [14][15][16].

Group 1: Earnings Performance - Acushnet reported quarterly earnings of $1.25 per share, missing the Zacks Consensus Estimate of $1.33 per share, but showing an increase from $1.11 per share a year ago, resulting in an earnings surprise of -6.02% [1] - The company posted revenues of $720.48 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.98% and increasing from $683.87 million year-over-year [2] - Over the last four quarters, Acushnet has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Acushnet shares have gained approximately 12.1% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $636.17 million, and for the current fiscal year, it is $3.54 on revenues of $2.51 billion [7] Group 3: Industry Context - The Leisure and Recreation Products industry, to which Acushnet belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Acushnet's stock performance [5][6]

Core Insights - MasterCraft Boat Company has announced a new partnership with Rinker's Boat World, which will serve as an authorized dealer in the Houston area, enhancing customer access to MasterCraft's premium boats [1][4] - Rinker's Boat World is committed to providing a full-service experience, including on-water demonstrations and comprehensive support for MasterCraft's complete line of towboats [2][4] - The partnership aims to expand MasterCraft's dealer network in high-demand regions, ensuring more customers can access top-tier towboats and superior service [4] Company Overview - MasterCraft is recognized as a leading innovator and manufacturer of premium performance sport boats, with a history of over 50 years in the industry [6] - The company operates under MasterCraft Boat Holdings, Inc., which also includes the brands Crest and Balise, and is headquartered in Vonore, TN [7]