Back to top

Image: Bigstock

Carnival (CCL) Increases Yet Falls Behind Market: What Investors Need to Know

Read MoreHide Full Article

In the latest trading session, Carnival (CCL - Free Report) closed at $16.95, marking a +0.06% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.96%.

Coming into today, shares of the cruise operator had gained 19.97% in the past month. In that same time, the Consumer Discretionary sector gained 0.83%, while the S&P 500 gained 3.35%.

Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.01, showcasing a 96.77% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.65 billion, indicating a 15.06% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has shifted 0.66% downward. Carnival is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 16.79. This signifies a premium in comparison to the average Forward P/E of 16.54 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.

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.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

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

Carnival Corporation (CCL) - free report >>

Published in