Back to top

Image: Bigstock

Carnival (CCL) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

Carnival (CCL - Free Report) closed at $16.50 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.31%.

Shares of the cruise operator have appreciated by 33.36% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 5.33% and the S&P 500's gain of 5.1%.

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 -$0.14, up 83.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.31 billion, up 38.27% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.73% lower. Carnival currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 17.98. For comparison, its industry has an average Forward P/E of 21.33, which means Carnival is trading at a discount to the group.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Carnival Corporation (CCL) - free report >>

Published in