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Carnival (CCL) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Carnival (CCL - Free Report) reached $16.20, with a +0.68% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.23%.

The cruise operator's shares have seen an increase of 12.68% over the last month, surpassing the Consumer Discretionary sector's gain of 3.69% and the S&P 500's gain of 7.08%.

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 -$0.01, up 96.77% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $5.66 billion, showing a 15.19% escalation compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.44% increase. Right now, Carnival possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 15.79. This signifies a discount in comparison to the average Forward P/E of 16.59 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.

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