Carnival (CCL) Stock Sinks As Market Gains: Here’s Why
Carnival (CCL) closed the latest trading day at $18.97, indicating a -0.16% change from the previous session’s end. This move lagged the S&P 500’s daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.15%.
The the stock of cruise operator has risen by 14.39% in the past month, leading the Consumer Discretionary sector’s gain of 3.2% and the S&P 500’s gain of 2%.
Market participants will be closely following the financial results of Carnival in its upcoming release. The company plans to announce its earnings on September 30, 2024. The company’s earnings per share (EPS) are projected to be $1.16, reflecting a 34.88% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.81 billion, up 13.99% from the year-ago period.
It’s also important for investors to be aware of any recent modifications to analyst estimates 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 company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been a 1.66% rise in the Zacks Consensus EPS estimate. Carnival is currently a Zacks Rank #3 (Hold).
In terms of valuation, Carnival is currently trading at a Forward P/E ratio of 15.77. This denotes a discount relative to the industry’s average Forward P/E of 17.39.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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