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Carnival (CCL) Ascends But Remains Behind Market: Some Facts to Note

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The most recent trading session ended with Carnival (CCL - Free Report) standing at $15.60, reflecting a +0.91% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.39%.

The cruise operator's stock has dropped by 16.12% in the past month, falling short of the Consumer Discretionary sector's loss of 2.32% and the S&P 500's loss of 1.85%.

Market participants will be closely following the financial results of Carnival in its upcoming release. The company is forecasted to report an EPS of $1.15, showcasing a 33.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.8 billion, indicating a 13.73% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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, the Zacks Consensus EPS estimate has shifted 0.47% upward. Carnival presently features a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Carnival has a Forward P/E ratio of 13.04 right now. This signifies a discount in comparison to the average Forward P/E of 18.53 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 25% of all industries, numbering over 250.

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.

To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.


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