Carnival (CCL) closed the most recent trading day at $25.58, moving -2.74% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the cruise operator have appreciated by 1.62% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 3.86%, and the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of Carnival in its upcoming release. The company's upcoming EPS is projected at $0.34, signifying a 2.86% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.63 billion, showing a 4.72% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.24 per share and a revenue of $27.82 billion, indicating changes of -0.44% and +4.51%, respectively, from the former year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.66% increase. At present, Carnival boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 11.73. This denotes a discount relative to the industry average Forward P/E of 15.96.
It is also worth noting that CCL currently has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.2 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 12% 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.
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
This article originally published on Zacks Investment Research (zacks.com).