Why Carnival (CCL) Dipped More Than Broader Market Today
Carnival (CCL) closed at $16.47 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
The cruise operator's stock has dropped by 10.73% in the past month, falling short of the Consumer Discretionary sector's gain of 2.59% and the S&P 500's gain of 3.36%.
Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.18, signifying a 67.27% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.39 billion, indicating a 21.72% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.14% higher. Carnival is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 16.48. This represents a premium compared to its industry's average Forward P/E of 16.41.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Carnival Corporation (CCL) : Free Stock Analysis Report
