Carnival (CCL) closed at $33.05 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily gain of 3.25%. At the same time, the Dow added 3.84%, and the tech-heavy Nasdaq gained 3.06%.
Prior to today's trading, shares of the cruise operator had lost 25.23% over the past month. This has lagged the Consumer Discretionary sector's loss of 10.49% and the S&P 500's loss of 9.87% 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 $0.46, down 6.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.74 billion, up 1.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $21.56 billion. These totals would mark changes of -2.73% and +3.55%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CCL. These revisions help to show the ever-changing nature of near-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.
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. The Zacks Consensus EPS estimate has moved 5.72% lower within the past month. CCL currently has a Zacks Rank of #4 (Sell).
In terms of valuation, CCL is currently trading at a Forward P/E ratio of 7.83. This represents a discount compared to its industry's average Forward P/E of 13.98.
It is also worth noting that CCL currently has a PEG ratio of 0.9. 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 1.4 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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