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

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In the latest trading session, Carnival (CCL - Free Report) closed at $9.82, marking a +0.72% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 0.09%.

Prior to today's trading, shares of the cruise operator had gained 4.5% over the past month. This has lagged the Consumer Discretionary sector's gain of 8.64% and the S&P 500's gain of 8.67% in that time.

Carnival will be looking to display strength as it nears its next earnings release. On that day, Carnival is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 93.14%. Meanwhile, our latest consensus estimate is calling for revenue of $5.18 billion, up 848.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.75 per share and revenue of $13.72 billion, which would represent changes of +46.88% and +618.61%, respectively, from the prior year.

Any recent changes to analyst estimates for Carnival should also be noted by investors. 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.

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. The Zacks Consensus EPS estimate has moved 5.98% lower within the past month. Carnival is currently a Zacks Rank #4 (Sell).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 47% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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