In the latest close session, Carnival (CCL) was down 3.51% at $23.89. This change lagged the S&P 500's 0.33% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
The stock of cruise operator has fallen by 10.97% in the past month, lagging the Consumer Discretionary sector's gain of 2.03% and the S&P 500's gain of 3.87%.
The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. In that report, analysts expect Carnival to post earnings of $1.36 per share. This would mark a year-over-year decline of 4.9%. Alongside, our most recent consensus estimate is anticipating revenue of $8.36 billion, indicating a 2.59% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $27.63 billion, demonstrating changes of -0.89% and +3.79%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Right now, Carnival possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Carnival has a Forward P/E ratio of 11.1 right now. This expresses a discount compared to the average Forward P/E of 16.99 of its industry.
We can additionally observe that CCL currently boasts a PEG ratio of 1.03. 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. The Leisure and Recreation Services industry had an average PEG ratio of 1.22 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.
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.
To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.
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Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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