U.S. Markets closed

Carnival (CCL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Carnival (CCL) closed at $44.57, marking a +1.53% move from the previous day. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.7%.

Coming into today, shares of the cruise operator had lost 0.11% in the past month. In that same time, the Consumer Discretionary sector gained 0.77%, while the S&P 500 gained 2.04%.

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, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. CCL is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CCL has a Forward P/E ratio of 10.28 right now. For comparison, its industry has an average Forward P/E of 16.99, which means CCL is trading at a discount to the group.

Meanwhile, CCL's PEG ratio is currently 1.03. 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 1.47 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 207, which puts it in the bottom 19% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research