Among the biggest losers in Tuesday’s early trading are Callaway Golf (NYSE: ELY), La-Z-Boy (NYSE: LZB) and Best Buy (NYSE: BBY).

Golf and the Economy

Shares of Callaway Golf (NYSE: ELY) are hitting a new low for the year this morning, down more than -7%, after the golf equipment maker cited a weak global economy for flat year-over-year quarterly results. Analysts had been expecting Callaway to post robust year-over-year comparisons.

The timing is bad; the second quarter is Callaway’s seasonally strongest, from a sales and profit perspective. The company historically loses money in the third and fourth quarters as golf pro shops and sporting goods stores wind down their inventories and hold off on new purchases.

It’s hard to know whether the tepid results are the result of a weak economy, or simply that the number of golfers is declining. The sport has always had a relatively high age demographic, and needs to keep pulling in new younger golfers to replace the ones that are retiring from the game. It’s not clear that the industry has been successful, as more courses are being closed than opened these days.

Action to Take –> In four of the past six years, Callaway has either lost money or earned very little. Most investors remained a fan of the stock simply based on ever-present buyout rumors. This shortfall is going to once again lead to rumors that Callaway Golf is up for sale. Shares could get a rebound from Tuesday’s sell-off on that speculation. One day, Callaway may be indeed be bought, but not likely in the near-term. No need to look for value in these beaten-down shares.

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Marked Down at Best Buy

There are only a small group of companies that should always be on your radar. These are usually very well-managed, dominate their market, generate lots of cash, and have a very resonant brand with consumers. And when these companies post the occasional weak quarter, shares can take a hit, creating one of the few times every year when shares are marked down and sport lower valuations.

#-ad_banner-#That’s the chance in Best Buy (NYSE: BBY) today. The electronics retailer announced Tuesday evening that it had missed per-share profit estimates by $0.11, sending shares down more than -6% in Tuesday trading. Consumers remain cautious, shopping for less expensive electronic devices. That’s crimping margins, and explains why bottom-line results were even weaker than top-line results.

But short-term investors may be overlooking the fact this retailer has little direct competition now that Circuit City is gone, which explains the company’s belief that it boosted market share by 100 basis points from a year ago. Other retailers such as Wal-Mart (NYSE: WMT) are targeting the niche, and could create a challenge from a pricing perspective, but Best Buy remains the go-to brand as far as electronics shoppers are concerned.

Action to Take –> Best Buy’s management stood by full-year earnings guidance, implying that subsequent quarters will be more robust to offset the recent shortfall. That may be too optimistic, especially if they are counting on a revived consumer. So be prepared for another challenging quarter or two this year. But shares are quite attractive, as this is a dominant company now trading for less than 10 times projected (February) 2012 profits.

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La-Z-Boy: Selling on the News

Looking at the recent stock action, investors bid up shares of La-Z-Boy (NYSE: LZB) on expectations that the eponymous furniture maker would deliver solid quarterly results, highlighted by lower expenses and a sharp year-over-year profit gain. That’s just what they got when results were released Monday night, but shares are off a heady -16% in Tuesday trading. A classic case of “buy on the rumor, sell on the news.”

As is the case with Best Buy, this is a long-term survivor that has managed to thrive even as other furniture makers mimic its offerings. The cost cuts noted above are turning this into an impressive profit story, as returns are expected to rise more than 80% in the current fiscal year that ends next April.

Further profit gains from there are simply a function of consumer spending. If past economic cycles are any guide, sales will likely rebound at a +5% to +7% pace in subsequent years (through a combination of modest volume gains and small price hikes). Per-share profits could expand in the low double-digits. With shares trading at around 10 times this year’s profits, that’s a bargain.

Action to Take –> These shares may be dead money for a awhile as the consumer remains in a funk, but the long-term outlook is quite appealing in relation to today’s sharp sell-off.