Carnival (CCL) Outperforms Broader Market: What You Need to Know

In the latest trading session, Carnival (CCL) closed at $28.42, marking a +2.71% move from the previous day. This change outpaced the S&P 500's 0.65% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.81%.

Prior to today's trading, shares of the cruise operator had gained 4.06% outpaced the Consumer Discretionary sector's gain of 3.08% and the S&P 500's gain of 2.38%.

The upcoming earnings release of Carnival will be of great interest to investors. The company's upcoming EPS is projected at $1.36, signifying a 4.90% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.37 billion, reflecting a 2.72% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.21 per share and revenue of $27.65 billion, which would represent changes of -1.78% and +3.86%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carnival. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Carnival holds a Zacks Rank of #3 (Hold).

Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 12.51. This represents a discount compared to its industry average Forward P/E of 17.32.

It is also worth noting that CCL currently has a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.35 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 169, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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 a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research