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Carnival (CCL) Gains As Market Dips: What You Should Know

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The latest trading session saw Carnival (CCL - Free Report) ending at $15.49, denoting a +1.18% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the cruise operator had lost 9.73% in the past month. In that same time, the Consumer Discretionary sector gained 3.76%, while the S&P 500 gained 5.78%.

Market participants will be closely following the financial results of Carnival in its upcoming release. The company is predicted to post an EPS of -$0.18, indicating a 67.27% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.4 billion, up 21.82% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.49% upward. Currently, Carnival is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 15.24. This represents a discount compared to its industry's average Forward P/E of 15.37.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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