In the latest trading session, Carnival (CCL - Free Report) closed at $44.70, marking a -0.33% move from the previous day. This change lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.11%.
Prior to today's trading, shares of the cruise operator had gained 5.68% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.92% and the S&P 500's gain of 4.32% 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 $0.50, down 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.54 billion, up 1.91% from the year-ago period.
CCL's full-year Zacks Consensus Estimates are calling for earnings of $4.27 per share and revenue of $20.47 billion. These results would represent year-over-year changes of +0.23% and +8.39%, respectively.
Any recent changes to analyst estimates for CCL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CCL is currently trading at a Forward P/E ratio of 10.5. Its industry sports an average Forward P/E of 18.14, so we one might conclude that CCL is trading at a discount comparatively.
Also, we should mention that CCL has a PEG ratio of 1.05. 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. The Leisure and Recreation Services was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.