Here's Why Carnival (CCL) Fell More Than Broader Market

Carnival (CCL) ended the recent trading session at $30.02, demonstrating a -3.63% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.94%. The cruise operator's stock has climbed by 2% in the past month, exceeding the Consumer Discretionary sector's loss of 3.62% and the S&P 500's gain of 0.89%.The upcoming earnings release of Carnival will be of great interest to investors. The company is expected to report EPS of $0.18, up 38.46% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.1 billion, indicating a 5.01% upward movement from the same quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.54 per share and a revenue of $27.84 billion, signifying shifts of +12.89% and +4.56%, respectively, from the last year. Any recent changes to analyst estimates for Carnival should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.55% fall in the Zacks Consensus EPS estimate. Carnival currently has a Zacks Rank of #3 (Hold). Digging into valuation, Carnival currently has a Forward P/E ratio of 12.25. This represents a discount compared to its industry average Forward P/E of 18.22. Investors should also note that CCL has a PEG ratio of 1.14 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. CCL's industry had an average PEG ratio of 1.37 as of yesterday's close. The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 164, positioning it in the bottom 34% of all 250+ industries. The Zacks Industry Rank gauges the strength of our 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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