Carnival (CCL) closed at $23.28 in the latest trading session, marking a -2.35% move from the prior day. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.
The stock of cruise operator has risen by 1.92% in the past month, leading the Consumer Discretionary sector's loss of 0% and the S&P 500's gain of 1.44%.
The investment community will be closely monitoring the performance of Carnival in its forthcoming earnings report. The company is expected to report EPS of $0.24, up 118.18% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.2 billion, showing a 7.27% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.87 per share and revenue of $26.08 billion, indicating changes of +31.69% and +4.22%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 1.03% higher. Carnival is currently a Zacks Rank #3 (Hold).
In terms of valuation, Carnival is currently trading at a Forward P/E ratio of 12.78. This denotes a discount relative to the industry average Forward P/E of 20.07.
It is also worth noting that CCL currently has a PEG ratio of 0.56. 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 had an average PEG ratio of 1.48 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
