Carnival (CCL) ended the recent trading session at $26.14, demonstrating a -3.65% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.66%. At the same time, the Dow lost 1.65%, and the tech-heavy Nasdaq lost 2.29%.
Prior to today's trading, shares of the cruise operator had lost 5.93% lagged the Consumer Discretionary sector's gain of 0.43% and the S&P 500's gain of 4.64%.
Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. On that day, Carnival is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 71.43%. At the same time, our most recent consensus estimate is projecting a revenue of $6.36 billion, reflecting a 7.13% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.17 per share and revenue of $26.64 billion, indicating changes of +52.82% and +6.49%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Carnival currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Carnival currently has a Forward P/E ratio of 12.53. This expresses a discount compared to the average Forward P/E of 20.21 of its industry.
We can also see that CCL currently has a PEG ratio of 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 41% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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