In the latest market close, Carnival (CCL) reached $22.41, with a +1.66% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.04%.
Prior to today's trading, shares of the cruise operator had gained 19.26% over the past month. This has outpaced the Consumer Discretionary sector's gain of 15.91% and the S&P 500's gain of 13.42% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.23, marking a 109.09% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.2 billion, up 7.19% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $26.05 billion, which would represent changes of +30.28% and +4.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Carnival is currently a Zacks Rank #3 (Hold).
Digging into valuation, Carnival currently has a Forward P/E ratio of 11.89. This indicates a discount in contrast to its industry's Forward P/E of 19.23.
It's also important to note that CCL currently trades at a PEG ratio of 0.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 1.25 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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