In the latest close session, Carnival (CCL) was up +1.67% at $26.14. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.66%.
The cruise operator’s stock has dropped by 5.2% in the past month, falling short of the Consumer Discretionary sector’s gain of 7.58% and the S&P 500’s gain of 3.34%.
Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.36, showcasing a 4.9% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.36 billion, up 2.59% from the prior-year quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carnival. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Carnival is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Carnival is holding a Forward P/E ratio of 11.52. This expresses a discount compared to the average Forward P/E of 16.92 of its industry.
Investors should also note that CCL has a PEG ratio of 1.07 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.24 based on yesterday’s closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 23% of all 250+ industries.
