In the latest close session, Carnival (CCL) was down 1.13% at $25.43. The stock's change was less than the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.82%.
The cruise operator's stock has dropped by 7.68% in the past month, falling short of the Consumer Discretionary sector's loss of 4.51% and the S&P 500's loss of 0.31%.
The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. It is anticipated that the company will report an EPS of $0.24, marking a 71.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.36 billion, indicating a 7.13% upward movement from the same quarter last year.
CCL's full-year Zacks Consensus Estimates are calling for earnings of $2.17 per share and revenue of $26.64 billion. These results would represent year-over-year changes of +52.82% and +6.49%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Carnival presently features a Zacks Rank of #3 (Hold).
Investors should also note Carnival's current valuation metrics, including its Forward P/E ratio of 11.88. This represents a discount compared to its industry average Forward P/E of 18.74.
It's also important to note that CCL currently trades at a PEG ratio of 0.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.15 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 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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