In the latest trading session, Carnival (CCL - Free Report) closed at $43.56, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.5%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq gained 2.1%.
Coming into today, shares of the cruise operator had lost 11.64% in the past month. In that same time, the Consumer Discretionary sector lost 2.07%, while the S&P 500 gained 0.54%.
CCL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.48, down 2.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.83 billion, up 3.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.53 per share and revenue of $21.88 billion, which would represent changes of +2.95% and +5.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CCL. 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. 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, 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 has moved 0.3% lower. 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 9.44 right now. Its industry sports an average Forward P/E of 17.43, so we one might conclude that CCL is trading at a discount comparatively.
Investors should also note that CCL has a PEG ratio of 1.09 right now. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.42 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 202, which puts it in the bottom 21% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.