Carnival (CCL) closed the most recent trading day at $31.55, moving -3.52% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.43% for the day. Elsewhere, the Dow saw a downswing of 1.05%, while the tech-heavy Nasdaq depreciated by 0.92%.
Coming into today, shares of the cruise operator had gained 4.98% in the past month. In that same time, the Consumer Discretionary sector lost 0.52%, while the S&P 500 lost 0.5%.
The upcoming earnings release of Carnival will be of great interest to investors. On that day, Carnival is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 38.46%. In the meantime, our current consensus estimate forecasts the revenue to be $6.1 billion, indicating a 5.01% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.54 per share and revenue of $27.85 billion, indicating changes of +12.89% and +4.6%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Carnival. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Carnival holds a Zacks Rank of #3 (Hold).
With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 12.86. Its industry sports an average Forward P/E of 17.63, so one might conclude that Carnival is trading at a discount comparatively.
It is also worth noting that CCL currently has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.42 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 29% of over 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.
Be sure to follow all of these stock-moving metrics, and many 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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