Carnival (CCL) closed at $44.49 in the latest trading session, marking a -1.31% move from the prior day. This move lagged the S&P 500's daily loss of 0.86%. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Prior to today's trading, shares of the cruise operator had gained 5.11% over the past month. This has lagged the Consumer Discretionary sector's gain of 5.47% and outpaced the S&P 500's gain of 3.66% in that time.
Wall Street will be looking for positivity from CCL as it approaches its next earnings report date. In that report, analysts expect CCL to post earnings of $0.50 per share. This would mark a year-over-year decline of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $4.56 billion, up 2.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.27 per share and revenue of $20.57 billion. These totals would mark changes of +0.23% and +8.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CCL. 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. 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 remained stagnant. CCL is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, CCL is holding a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 19.15, which means CCL is trading at a discount to the group.
Meanwhile, CCL's PEG ratio is currently 1.06. 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 1.71 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 214, 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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