Carnival (CCL) ended the recent trading session at $23.61, demonstrating a +1.42% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.13%.
Prior to today's trading, shares of the cruise operator had gained 1.66% outpaced the Consumer Discretionary sector's loss of 0.61% and the S&P 500's gain of 0.6%.
The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. 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 $6.21 billion, showing a 7.35% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.88 per share and a revenue of $26.1 billion, signifying shifts of +32.39% and +4.3%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Carnival. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.7% upward. Carnival is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Carnival is presently being traded at a Forward P/E ratio of 12.4. This expresses a discount compared to the average Forward P/E of 19.54 of its industry.
One should further note that CCL currently holds a PEG ratio of 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services industry had an average PEG ratio of 1.49 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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