Carnival (CCL) closed at $23.20 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's 0.58% loss on the day. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The cruise operator's shares have seen a decrease of 15.28% over the last month, not keeping up with the Consumer Discretionary sector's loss of 2.32% and the S&P 500's loss of 0.36%.
Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 4.9% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.36 billion, up 2.59% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $27.63 billion. These totals would mark changes of -0.89% and +3.79%, respectively, from last year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Carnival is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Carnival is holding a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 16.15, so one might conclude that Carnival is trading at a discount comparatively.
We can additionally observe that CCL currently boasts a PEG ratio of 1.01. 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. The Leisure and Recreation Services was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Carnival Corporation (CCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).