Carnival (CCL) closed at $27.86 in the latest trading session, marking a -5.3% move from the prior day. This change lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.8%.
Prior to today's trading, shares of the cruise operator had gained 0.07% outpaced the Consumer Discretionary sector's loss of 4.38% and lagged the S&P 500's gain of 3.57%.
Market participants will be closely following the financial results of Carnival in its upcoming release. The company's upcoming EPS is projected at $0.24, signifying a 71.43% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.36 billion, up 7.13% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.15 per share and revenue of $26.64 billion, indicating changes of +51.41% and +6.49%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.42% increase. As of now, Carnival holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 13.7. For comparison, its industry has an average Forward P/E of 20.78, which means Carnival is trading at a discount to the group.
Investors should also note that CCL has a PEG ratio of 0.61 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CCL's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 61, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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