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Carnival (CCL) Registers a Bigger Fall Than the Market: Important Facts to Note

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Carnival (CCL - Free Report) closed the most recent trading day at $26.45, moving -1.23% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.55%, and the technology-centric Nasdaq decreased by 0.18%.

The cruise operator's stock has climbed by 10.52% in the past month, falling short of the Consumer Discretionary sector's gain of 11.58% and outpacing the S&P 500's gain of 6.66%.

The upcoming earnings release of Carnival will be of great interest to investors. The company is forecasted to report an EPS of $0.07, showcasing a 200% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.9 billion, indicating a 9.27% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.34% higher. At present, Carnival boasts a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 15.74. This signifies a discount in comparison to the average Forward P/E of 22.55 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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