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Carnival (CCL) Dips More Than Broader Markets: What You Should Know

Carnival (CCL) closed the most recent trading day at $16.24, moving -1.34% from the previous trading session. This move lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.27%.

Coming into today, shares of the cruise operator had gained 12.74% in the past month. In that same time, the Consumer Discretionary sector gained 2.98%, while the S&P 500 gained 0.6%.

Wall Street will be looking for positivity from CCL as it approaches its next earnings report date. In that report, analysts expect CCL to post earnings of -$2.21 per share. This would mark a year-over-year decline of 184.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $100.37 million, down 98.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$7.42 per share and revenue of $5.91 billion. These totals would mark changes of -268.64% and -71.63%, respectively, from last year.

Any recent changes to analyst estimates for CCL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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, the Zacks Consensus EPS estimate has moved 1.33% lower. CCL is currently a Zacks Rank #5 (Strong Sell).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% 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.

You can find more information on all of these metrics, and much 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.

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