In the latest close session, Carnival (CCL) was down 2.96% at $31.51. This move lagged the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.
The cruise operator's stock has climbed by 7.34% in the past month, exceeding the Consumer Discretionary sector's gain of 5.91% and the S&P 500's gain of 3.44%.
Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.31, showcasing a 3.15% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.05 billion, indicating a 1.99% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $26.49 billion, which would represent changes of +40.85% and +5.86%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Carnival possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Carnival is at present trading with a Forward P/E ratio of 16.23. Its industry sports an average Forward P/E of 21.42, so one might conclude that Carnival is trading at a discount comparatively.
We can also see that CCL currently has a PEG ratio of 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.34.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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