In the latest trading session, Carnival (CCL) closed at $19.69, marking a +0.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the cruise operator had gained 17.02% over the past month. This has outpaced the Consumer Discretionary sector's gain of 13.89% and the S&P 500's gain of 10.62% in that time.
The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. The company's earnings per share (EPS) are projected to be $0.24, reflecting a 118.18% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.2 billion, indicating a 7.3% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.85 per share and a revenue of $26.06 billion, demonstrating changes of +30.28% and +4.17%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.47% lower within the past month. Carnival presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 18.25, so one might conclude that Carnival is trading at a discount comparatively.
Investors should also note that CCL has a PEG ratio of 0.46 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CCL's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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