In the latest trading session, Carnival (CCL - Free Report) closed at $44.38, marking a -1.07% move from the previous day. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq lost 0.29%.
Heading into today, shares of the cruise operator had gained 11.79% over the past month, outpacing the Consumer Discretionary sector's gain of 3.21% and the S&P 500's gain of 4.3% in that time.
Investors will be hoping for strength from CCL as it approaches its next earnings release. On that day, CCL is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 28.57%. Our most recent consensus estimate is calling for quarterly revenue of $4.54 billion, up 1.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.27 per share and revenue of $20.47 billion. These totals would mark changes of +0.23% and +8.39%, respectively, from last year.
Any recent changes to analyst estimates for CCL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. CCL currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CCL has a Forward P/E ratio of 10.5 right now. For comparison, its industry has an average Forward P/E of 16.43, which means CCL is trading at a discount to the group.
Meanwhile, CCL's PEG ratio is currently 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.