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Carnival (CCL) closed the most recent trading day at $18.63, moving +1.58% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The the stock of cruise operator has fallen by 8.39% in the past month, lagging the Consumer Discretionary sector's gain of 1.14% and the S&P 500's loss of 0.7%.
The upcoming earnings release of Carnival will be of great interest to investors. The company is expected to report EPS of $0.24, up 118.18% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.2 billion, indicating a 7.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $26.06 billion, which would represent changes of +30.28% and +4.17%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Carnival. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.12% fall in the Zacks Consensus EPS estimate. At present, Carnival boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Carnival currently has a Forward P/E ratio of 9.89. This expresses a discount compared to the average Forward P/E of 17.13 of its industry.
It is also worth noting that CCL currently has a PEG ratio of 0.43. 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. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.19.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% of all 250+ industries.