In the latest trading session, Carnival (CCL) closed at $44.48, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.26%.
Coming into today, shares of the cruise operator had gained 6.28% in the past month. In that same time, the Consumer Discretionary sector gained 3.66%, while the S&P 500 gained 4.12%.
Wall Street will be looking for positivity from CCL as it approaches its next earnings report date. On that day, CCL is projected to report earnings of $0.50 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.27 per share and revenue of $20.47 billion, which would represent changes of +0.23% and +8.39%, respectively, from the prior year.
Any recent changes to analyst estimates for CCL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. 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 10.46 right now. This valuation marks a discount compared to its industry's average Forward P/E of 17.67.
It is also worth noting that CCL currently has a PEG ratio of 1.05. 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 1.39 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 198, which puts it in the bottom 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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