Carnival (CCL) closed at $22.09 in the latest trading session, marking a -2.11% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.45%. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.78%.
The stock of cruise operator has fallen by 18.64% in the past month, lagging the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 1.99%.
The investment community will be closely monitoring the performance of Carnival in its forthcoming earnings report. On that day, Carnival is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 4.9%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.37 billion, indicating a 2.72% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and a revenue of $27.65 billion, representing changes of -0.89% and +3.86%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Carnival. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.26% lower. Currently, Carnival is carrying a Zacks Rank of #3 (Hold).
Investors should also note Carnival's current valuation metrics, including its Forward P/E ratio of 10.13. This valuation marks a discount compared to its industry average Forward P/E of 15.37.
We can also see that CCL currently has a PEG ratio of 0.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CCL's industry had an average PEG ratio of 1.14 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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This article originally published on Zacks Investment Research (zacks.com).