In the latest trading session, Carnival (CCL) closed at $28.06, marking a +1.15% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.27%.
Shares of the cruise operator have appreciated by 10.47% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.1%, and the S&P 500's loss of 0.2%.
The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. The company is predicted to post an EPS of $0.22, indicating a 35.29% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.45 billion, indicating a 1.9% growth compared to the corresponding quarter of the prior year.
CCL's full-year Zacks Consensus Estimates are calling for earnings of $2.26 per share and revenue of $27.73 billion. These results would represent year-over-year changes of +0.44% and +4.16%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Carnival. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.13% higher. Carnival presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Carnival is currently exchanging hands at a Forward P/E ratio of 12.29. For comparison, its industry has an average Forward P/E of 16.44, which means Carnival is trading at a discount to the group.
One should further note that CCL currently holds a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.31 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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).