The most recent trading session ended with Carnival (CCL) standing at $23.87, reflecting a -2.61% shift from the previous trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.27%.
Prior to today's trading, shares of the cruise operator had gained 7.78% outpaced the Consumer Discretionary sector's gain of 6.45% and the S&P 500's gain of 6.9%.
The upcoming earnings release of Carnival will be of great interest to investors. The company is predicted to post an EPS of $0.23, indicating a 109.09% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 7.19% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.86 per share and revenue of $26.05 billion, indicating changes of +30.99% and +4.12%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.62% upward. Carnival currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 13.19. For comparison, its industry has an average Forward P/E of 20.25, which means Carnival is trading at a discount to the group.
It's also important to note that CCL currently trades at a PEG ratio of 0.58. 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 1.49.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
To follow CCL in the coming trading sessions, be sure to utilize 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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