Carnival (CCL) closed the most recent trading day at $31.55, moving -3.04% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, lost 0.31%.
Heading into today, shares of the cruise operator had gained 15.19% over the past month, outpacing the Consumer Discretionary sector's loss of 1% and the S&P 500's loss of 0.76%.
The upcoming earnings release of Carnival will be of great interest to investors. In that report, analysts expect Carnival to post earnings of $0.18 per share. This would mark year-over-year growth of 38.46%. At the same time, our most recent consensus estimate is projecting a revenue of $6.1 billion, reflecting a 5.01% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.54 per share and revenue of $27.84 billion, indicating changes of +12.89% and +4.56%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Carnival possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 12.8. This signifies a discount in comparison to the average Forward P/E of 18.63 for its industry.
Investors should also note that CCL has a PEG ratio of 1.19 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
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.
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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