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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Carnival (CCL - Free Report) is a stock many investors are watching right now. CCL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.58 right now. For comparison, its industry sports an average P/E of 16.08. CCL's Forward P/E has been as high as 20.07 and as low as 8.45, with a median of 13.45, all within the past year.
Investors will also notice that CCL has a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCL's PEG compares to its industry's average PEG of 0.83. CCL's PEG has been as high as 0.86 and as low as 0.37, with a median of 0.60, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 3.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.28. Over the past 12 months, CCL's P/B has been as high as 3.79 and as low as 2.09, with a median of 3.05.
Finally, our model also underscores that CCL has a P/CF ratio of 8.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCL's P/CF compares to its industry's average P/CF of 13.07. Over the past year, CCL's P/CF has been as high as 8.64 and as low as 4.49, with a median of 7.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Carnival is likely undervalued currently. And when considering the strength of its earnings outlook, CCL sticks out as one of the market's strongest value stocks.
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Is Carnival (CCL) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Carnival (CCL - Free Report) is a stock many investors are watching right now. CCL is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.58 right now. For comparison, its industry sports an average P/E of 16.08. CCL's Forward P/E has been as high as 20.07 and as low as 8.45, with a median of 13.45, all within the past year.
Investors will also notice that CCL has a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CCL's PEG compares to its industry's average PEG of 0.83. CCL's PEG has been as high as 0.86 and as low as 0.37, with a median of 0.60, all within the past year.
Another valuation metric that we should highlight is CCL's P/B ratio of 3.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.28. Over the past 12 months, CCL's P/B has been as high as 3.79 and as low as 2.09, with a median of 3.05.
Finally, our model also underscores that CCL has a P/CF ratio of 8.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CCL's P/CF compares to its industry's average P/CF of 13.07. Over the past year, CCL's P/CF has been as high as 8.64 and as low as 4.49, with a median of 7.39.
Value investors will likely look at more than just these metrics, but the above data helps show that Carnival is likely undervalued currently. And when considering the strength of its earnings outlook, CCL sticks out as one of the market's strongest value stocks.