Investment Education

Carnival (CCL) closed the most recent trading day at $24.31, moving -0.98% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.61%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.64%.

Shares of the cruise operator witnessed a gain of 14.72% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 6.6% and the S&P 500's gain of 3.07%.

Investors will be eagerly watching for the performance of Carnival in its upcoming earnings disclosure. On that day, Carnival is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 185.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.89 billion, up 9.09% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for Carnival. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Carnival presently features a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 18.7. This denotes a discount relative to the industry's average Forward P/E of 21.84.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.