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

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Carnival (CCL - Free Report) closed at $14.52 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.75%.

Shares of the cruise operator have appreciated by 3.56% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.15% and the S&P 500's gain of 2%.

Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is expected to report EPS of -$0.01, up 96.77% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.66 billion, indicating a 15.19% increase compared to the same quarter of the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. At present, Carnival boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Carnival is holding a Forward P/E ratio of 14.29. This indicates a discount in contrast to its industry's Forward P/E of 16.51.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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


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