In the latest close session, Carnival (CCL) was down 1.96% at $27.51. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.
Shares of the cruise operator witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.17%, and underperforming the S&P 500's gain of 6.32%.
The upcoming earnings release of Carnival will be of great interest to investors. In that report, analysts expect Carnival to post earnings of $0.34 per share. This would mark a year-over-year decline of 2.86%. In the meantime, our current consensus estimate forecasts the revenue to be $6.63 billion, indicating a 4.72% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.24 per share and a revenue of $27.83 billion, signifying shifts of -0.44% and +4.54%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Carnival. 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, there's been a 0.97% fall in the Zacks Consensus EPS estimate. Currently, Carnival is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 12.52. This represents a discount compared to its industry average Forward P/E of 16.5.
Investors should also note that CCL has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CCL's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 21% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Carnival Corporation (CCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).