Carnival (CCL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·2-min read

In the latest trading session, Carnival (CCL) closed at $26.31, marking a -1.64% move from the previous day. This change lagged the S&P 500's 2.38% gain on the day. Elsewhere, the Dow gained 1.95%, while the tech-heavy Nasdaq added 3.01%.

Heading into today, shares of the cruise operator had gained 35.51% over the past month, outpacing the Consumer Discretionary sector's gain of 4.99% and the S&P 500's loss of 0.91% in that time.

CCL will be looking to display strength as it nears its next earnings release. On that day, CCL is projected to report earnings of -$1.55 per share, which would represent a year-over-year decline of 804.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $163.12 million, down 96.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$4.16 per share and revenue of $6.32 billion, which would represent changes of +44.31% and +12.97%, respectively, from the prior year.

Any recent changes to analyst estimates for CCL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.09% lower. CCL is currently a Zacks Rank #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 30% 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.


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