Carnival (CCL) closed the most recent trading day at $43.03, moving -1.03% from the previous trading session. This change lagged the S&P 500's 0.32% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the cruise operator had lost 8.17% over the past month, lagging the Consumer Discretionary sector's loss of 7.04% and the S&P 500's loss of 4.64% in that time.
Investors will be hoping for strength from CCL as it approaches its next earnings release. In that report, analysts expect CCL to post earnings of $2.53 per share. This would mark year-over-year growth of 7.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.25 billion, up 7.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.34 per share and revenue of $20.35 billion. These totals would mark changes of +1.88% and +7.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CCL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CCL currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CCL currently has a Forward P/E ratio of 10.02. This valuation marks a discount compared to its industry's average Forward P/E of 18.94.
Also, we should mention that CCL has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CCL's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.