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Why the Market Dipped But Carnival (CCL) Gained Today

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Carnival (CCL - Free Report) closed the most recent trading day at $24.02, moving +0.8% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.83%.

Shares of the cruise operator have appreciated by 21.03% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 6.96% and the S&P 500's gain of 5.17%.

Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.23, showcasing a 109.09% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 7.19% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.85 per share and revenue of $26.05 billion. These totals would mark changes of +30.28% and +4.12%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.38% higher. Carnival is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Carnival is at present trading with a Forward P/E ratio of 12.85. This signifies a discount in comparison to the average Forward P/E of 19.73 for its industry.

Meanwhile, CCL's PEG ratio is currently 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.36.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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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