In the latest trading session, Carnival (CCL) closed at $27.09, marking a +0.15% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.
The cruise operator's shares have seen an increase of 12.1% over the last month, surpassing the Consumer Discretionary sector's gain of 2.95% and the S&P 500's gain of 1.02%.
Analysts and investors alike will be keeping a close eye on the performance of Carnival in its upcoming earnings disclosure. On that day, Carnival is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 114.29%. At the same time, our most recent consensus estimate is projecting a revenue of $5.75 billion, reflecting a 6.34% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.77 per share and a revenue of $26.01 billion, indicating changes of +24.65% and +3.97%, respectively, from the former year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 2.62% rise in the Zacks Consensus EPS estimate. Carnival is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 15.29. This represents a discount compared to its industry's average Forward P/E of 19.74.
We can also see that CCL currently has a PEG ratio of 0.84. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpCarnival Corporation (CCL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
