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Carnival (CCL) Declines More Than Market: Some Information for Investors

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Carnival (CCL - Free Report) closed at $26.18 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's 0.54% loss on the day. On the other hand, the Dow registered a loss of 0.53%, and the technology-centric Nasdaq decreased by 0.66%.

Shares of the cruise operator witnessed a gain of 8.39% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 5.33% and the S&P 500's gain of 1.5%.

The upcoming earnings release of Carnival will be of great interest to investors. The company's earnings report is expected on December 20, 2024. The company's upcoming EPS is projected at $0.08, signifying a 214.29% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.9 billion, reflecting a 9.32% rise from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.27% higher. Carnival is currently a Zacks Rank #3 (Hold).

With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 15.5. For comparison, its industry has an average Forward P/E of 22.8, which means Carnival is trading at a discount to the group.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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