Carnival Corporation (CCL) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Carnival (CCL)? Shares have been on the move with the stock up 7.3% over the past month. The stock hit a new 52-week high of $32.8 in the previous session. Carnival has gained 30.3% since the start of the year compared to the 12% move for the Zacks Consumer Discretionary sector and the 13.3% return for the Zacks Leisure and Recreation Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 24, 2025, Carnival reported EPS of $0.35 versus consensus estimate of $0.24 while it beat the consensus revenue estimate by 1.97%.For the current fiscal year, Carnival is expected to post earnings of $2 per share on $26.49 in revenues. This represents a 40.85% change in EPS on a 5.86% change in revenues. For the next fiscal year, the company is expected to earn $2.28 per share on $27.44 in revenues. This represents a year-over-year change of 13.81% and 3.59%, respectively.Valuation MetricsCarnival may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Carnival has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 16.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.4X. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 8.2X. Additionally, the stock has a PEG ratio of 0.73. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Carnival an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Carnival currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carnival passes the test. Thus, it seems as though Carnival shares could have potential in the weeks and months to come.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Carnival Corporation (CCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks