In the latest trading session, Carnival (CCL - Free Report) closed at $44.29, marking a -0.95% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the cruise operator had lost 2.04% over the past month, outpacing the Consumer Discretionary sector's loss of 9.49% and the S&P 500's loss of 5.58% in that time.
CCL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.53, up 7.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.25 billion, up 7.02% from the prior-year quarter.
CCL's full-year Zacks Consensus Estimates are calling for earnings of $4.34 per share and revenue of $20.35 billion. These results would represent year-over-year changes of +1.88% and +7.79%, respectively.
Any recent changes to analyst estimates for CCL should also be noted by investors. These revisions help to show the ever-changing nature 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CCL currently has a Zacks Rank of #4 (Sell).
Investors should also note CCL's current valuation metrics, including its Forward P/E ratio of 10.3. This represents a discount compared to its industry's average Forward P/E of 18.83.
It is also worth noting that CCL currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CCL's industry had an average PEG ratio of 1.47 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.