In the latest trading session, Carnival (CCL) closed at $30.25, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
The cruise operator's shares have seen an increase of 5.51% over the last month, surpassing the Consumer Discretionary sector's gain of 0.32% and the S&P 500's gain of 3.46%.
The upcoming earnings release of Carnival will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 3.15% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.05 billion, indicating a 1.99% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2 per share and revenue of $26.49 billion, indicating changes of +40.85% and +5.87%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Carnival. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.56% rise in the Zacks Consensus EPS estimate. Carnival is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Carnival is holding a Forward P/E ratio of 15.31. This valuation marks a discount compared to its industry average Forward P/E of 22.02.
One should further note that CCL currently holds a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.13.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 196, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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