Carnival (CCL) closed at $22.99 in the latest trading session, marking a +1.1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.21%, and the technology-dominated Nasdaq saw an increase of 0.72%.
Heading into today, shares of the cruise operator had gained 26.33% over the past month, outpacing the Consumer Discretionary sector's gain of 17.51% and the S&P 500's gain of 9.86% in that time.
The upcoming earnings release of Carnival will be of great interest to investors. The company is predicted to post an EPS of $0.24, indicating a 118.18% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.2 billion, showing a 7.3% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.85 per share and a revenue of $26.06 billion, indicating changes of +30.28% and +4.17%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Carnival. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Carnival boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Carnival has a Forward P/E ratio of 12.27 right now. This expresses a discount compared to the average Forward P/E of 19.83 of its industry.
Investors should also note that CCL has a PEG ratio of 0.54 right now. 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. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.62.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 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.
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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