Carnival (CCL) closed the most recent trading day at $41.78, moving -1% from the previous trading session. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 1.13%.
Heading into today, shares of the cruise operator had lost 14.23% over the past month, lagging the Consumer Discretionary sector's loss of 1.57% and the S&P 500's gain of 2.95% in that time.
Wall Street will be looking for positivity from CCL as it approaches its next earnings report date. The company is expected to report EPS of $0.47, down 4.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.79 billion, up 2.58% from the year-ago period.
CCL's full-year Zacks Consensus Estimates are calling for earnings of $4.51 per share and revenue of $21.88 billion. These results would represent year-over-year changes of +2.5% and +5.08%, respectively.
Investors should also note any recent changes to analyst estimates for CCL. These recent revisions tend to reflect the evolving nature of short-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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. CCL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note CCL's current valuation metrics, including its Forward P/E ratio of 9.36. Its industry sports an average Forward P/E of 17.77, so we one might conclude that CCL is trading at a discount comparatively.
It is also worth noting that CCL currently has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.44 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 213, putting it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.