Carnival (NYSE:CCL) closed at $45.41 in the latest trading session, marking a +1.43% move from the prior day. This change outpaced the S&P 500's 0.32% loss on the day. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Heading into today, shares of the cruise operator had lost 0.62% over the past month, lagging the Consumer Discretionary sector's gain of 5.47% and the S&P 500's gain of 2.51% in that time.
Investors will be hoping for strength from CCL as it approaches its next earnings release. On that day, CCL is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.60 billion, up 3.34% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CCL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. CCL currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CCL is holding a Forward P/E ratio of 10.23. For comparison, its industry has an average Forward P/E of 19.24, which means CCL is trading at a discount to the group.
It is also worth noting that CCL currently has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 1.63 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Carnival Corporation (CCL): Free Stock Analysis Report
Original post