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Carnival (CCL) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest market close, Carnival (CCL - Free Report) reached $16.19, with a -0.43% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.63%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.82%.

Heading into today, shares of the cruise operator had gained 9.86% over the past month, outpacing the Consumer Discretionary sector's loss of 1.33% and the S&P 500's gain of 1.76% in that time.

The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. The company is slated to reveal its earnings on March 27, 2024. The company is predicted to post an EPS of -$0.17, indicating a 69.09% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.4 billion, indicating a 21.95% increase compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Carnival. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 past month, there's been a 1.22% rise in the Zacks Consensus EPS estimate. Carnival presently features a Zacks Rank of #2 (Buy).

With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 15.99. This valuation marks a premium compared to its industry's average Forward P/E of 15.9.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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