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Carnival (CCL) Stock Declines While Market Improves: Some Information for Investors

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Carnival (CCL - Free Report) ended the recent trading session at $18.34, demonstrating a -1.98% swing from the preceding day's closing price. This change lagged the S&P 500's 0.15% gain on the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.09%.

The cruise operator's stock has dropped by 3.51% in the past month, falling short of the Consumer Discretionary sector's gain of 0.88% and the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of Carnival in its upcoming release. It is anticipated that the company will report an EPS of $0.24, marking a 118.18% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.2 billion, reflecting a 7.3% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $26.06 billion, which would represent changes of +30.28% and +4.17%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.12% decrease. Right now, Carnival possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Carnival is presently being traded at a Forward P/E ratio of 10.09. This indicates a discount in contrast to its industry's Forward P/E of 17.23.

Investors should also note that CCL has a PEG ratio of 0.44 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry had an average PEG ratio of 1.21 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 39% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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