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Carnival Corporation (CCL) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Carnival (CCL - Free Report) ? Shares have been on the move with the stock up 20.6% over the past month. The stock hit a new 52-week high of $31.01 in the previous session. Carnival has gained 23.4% since the start of the year compared to the 11.4% gain for the Zacks Consumer Discretionary sector and the 13.9% return for the Zacks Leisure and Recreation Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 24, 2025, Carnival reported EPS of $0.35 versus consensus estimate of $0.24 while it beat the consensus revenue estimate by 1.97%.
For the current fiscal year, Carnival is expected to post earnings of $2 per share on $26.47 in revenues. This represents a 40.85% change in EPS on a 5.81% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $27.4 in revenues. This represents a year-over-year change of 13.81% and 3.51%, respectively.
Valuation Metrics
Carnival may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Carnival has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.4X. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 8.7X. Additionally, the stock has a PEG ratio of 0.67. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Carnival an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Carnival currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carnival passes the test. Thus, it seems as though Carnival shares could have potential in the weeks and months to come.
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Carnival Corporation (CCL) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Carnival (CCL - Free Report) ? Shares have been on the move with the stock up 20.6% over the past month. The stock hit a new 52-week high of $31.01 in the previous session. Carnival has gained 23.4% since the start of the year compared to the 11.4% gain for the Zacks Consumer Discretionary sector and the 13.9% return for the Zacks Leisure and Recreation Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 24, 2025, Carnival reported EPS of $0.35 versus consensus estimate of $0.24 while it beat the consensus revenue estimate by 1.97%.
For the current fiscal year, Carnival is expected to post earnings of $2 per share on $26.47 in revenues. This represents a 40.85% change in EPS on a 5.81% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $27.4 in revenues. This represents a year-over-year change of 13.81% and 3.51%, respectively.
Valuation Metrics
Carnival may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Carnival has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.4X. On a trailing cash flow basis, the stock currently trades at 7.7X versus its peer group's average of 8.7X. Additionally, the stock has a PEG ratio of 0.67. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Carnival an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Carnival currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carnival passes the test. Thus, it seems as though Carnival shares could have potential in the weeks and months to come.