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Carnival (CCL) Outpaces Stock Market Gains: What You Should Know

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Carnival (CCL - Free Report) closed at $17.82 in the latest trading session, marking a +1.08% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.46% for the day. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.

Shares of the cruise operator witnessed a gain of 37.95% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 6.68% and the S&P 500's gain of 4.85%.

The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. On that day, Carnival is projected to report earnings of -$0.14 per share, which would represent year-over-year growth of 83.53%. Simultaneously, our latest consensus estimate expects the revenue to be $5.31 billion, showing a 38.27% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carnival. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.73% decrease. As of now, Carnival holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Carnival has a Forward P/E ratio of 19.39 right now. This indicates a discount in contrast to its industry's Forward P/E of 21.67.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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